(1) "Advance fee" means any consideration paid or given, directly or indirectly, to a
mortgage lender, first mortgage broker or originator required to be licensed or registered
pursuant to sections 36a-485 to 36a-498a, inclusive, prior to the closing of a first mortgage loan to any person, including, but not limited to, loan fees, points, broker's fees
or commissions, transaction fees or similar prepaid finance charges;

(2) "Advertise" or "advertisement" means the use of media, mail, computer, telephone, personal contact or any other means to offer the opportunity for a first mortgage loan;

(3) "First mortgage broker" means a person who, for a fee, commission or other
valuable consideration, directly or indirectly, negotiates, solicits, arranges, places or
finds a first mortgage loan that is to be made by a mortgage lender, whether or not the
mortgage lender is required to be licensed under sections 36a-485 to 36a-498a, inclusive;

(4) "First mortgage correspondent lender" means a person engaged in the business
of making first mortgage loans in such person's own name where the loans are not held
by such person for more than ninety days and are funded by another person through a
warehouse agreement, table funding agreement or similar agreement;

(5) "First mortgage lender" means a person engaged in the business of making first
mortgage loans: (A) In such person's own name utilizing such person's own funds, or
(B) by funding loans through a table funding agreement;

(6) "First mortgage loan" means a loan or an extension of credit, including, but not
limited to, an extension of credit pursuant to a contract or an assigned contract for the
sale of goods or services, made to a natural person, the proceeds of which are to be used
primarily for personal, family or household purposes, and which is secured by a first
mortgage upon any interest in one-to-four-family residential owner-occupied real property located in this state which is not subject to any prior mortgages and includes the
renewal or refinancing of an existing first mortgage loan;

(7) "Mortgage lender" means a first mortgage lender, a first mortgage correspondent
lender, or both;

(8) "Originator" means an individual who is employed or retained by, or otherwise
acts on behalf of, a mortgage lender or first mortgage broker that is licensed or required
to be licensed under sections 36a-485 to 36a-498a, inclusive, for, or with the expectation
of, a fee, commission or other valuable consideration, to take an application for or
negotiate, solicit, arrange or find a first mortgage loan. "Originator" does not include
(1) an officer, if the licensee is a corporation; a general partner, if the licensee is a
partnership; a member, if the licensee is a limited liability company; or a sole proprietor,
if the licensee is a sole proprietorship, or (2) an individual whose responsibilities are
limited to clerical and administrative tasks and who does not solicit borrowers, take
applications or negotiate the terms of loans;

(9) "Residential property" means improved real property used or occupied, or intended to be used or occupied, for residential purposes;

(10) "Simulated check" means a document that imitates or resembles a check but
is not a negotiable instrument;

(11) "Table funding agreement" means an agreement wherein a person agrees to
fund mortgage loans to be made in another person's name and to purchase such loans
after they are made; and

(12) "Warehouse agreement" means an agreement to provide credit to a person to
enable the person to have funds to make mortgage loans and hold such loans pending
sale to other persons.

*Note: On and after September 30, 2008, this section, as amended by section 4 of
public act 07-156, is to read as follows:

"Sec. 36a-485. (Formerly Sec. 36-440). Definitions. As used in this section and
sections 36a-486 to 36a-498a, inclusive, unless the context otherwise requires:

(1) "Advance fee" means any consideration paid or given, directly or indirectly, to
a mortgage lender, first mortgage broker or originator required to be licensed pursuant
to sections 36a-485 to 36a-498a, inclusive, prior to the closing of a first mortgage loan to
any person, including, but not limited to, loan fees, points, broker's fees or commissions,
transaction fees or similar prepaid finance charges;

(2) "Advertise" or "advertisement" means the use of media, mail, computer, telephone, personal contact or any other means to offer the opportunity for a first mortgage loan;

(3) "First mortgage broker" means a person who, for a fee, commission or other
valuable consideration, directly or indirectly, negotiates, solicits, arranges, places or
finds a first mortgage loan that is to be made by a mortgage lender, whether or not the
mortgage lender is required to be licensed under sections 36a-485 to 36a-498a, inclusive;

(4) "First mortgage correspondent lender" means a person engaged in the business
of making first mortgage loans in such person's own name where the loans are not held
by such person for more than ninety days and are funded by another person through a
warehouse agreement, table funding agreement or similar agreement;

(5) "First mortgage lender" means a person engaged in the business of making first
mortgage loans: (A) In such person's own name utilizing such person's own funds, or
(B) by funding loans through a table funding agreement;

(6) "First mortgage loan" means a loan or an extension of credit, including, but not
limited to, an extension of credit pursuant to a contract or an assigned contract for the
sale of goods or services, made to a natural person, the proceeds of which are to be used
primarily for personal, family or household purposes, and which is secured by a first
mortgage upon any interest in one-to-four-family residential owner-occupied real property located in this state which is not subject to any prior mortgages and includes the
renewal or refinancing of an existing first mortgage loan;

(7) "Mortgage lender" means a first mortgage lender, a first mortgage correspondent
lender, or both;

(8) "Originator" means an individual who is employed or retained by, or otherwise
acts on behalf of, a mortgage lender or first mortgage broker that is licensed or required
to be licensed under sections 36a-485 to 36a-498a, inclusive, for, or with the expectation
of, a fee, commission or other valuable consideration, to take an application for or
negotiate, solicit, arrange or find a first mortgage loan. "Originator" does not include
(1) an officer, if the mortgage lender or first mortgage broker licensee is a corporation;
a general partner, if the licensee is a partnership; a member, if the licensee is a limited
liability company; or a sole proprietor, if the licensee is a sole proprietorship, or (2) an
individual whose responsibilities are limited to clerical and administrative tasks and
who does not solicit borrowers, take applications or negotiate the terms of loans;

(9) "Residential property" means improved real property used or occupied, or intended to be used or occupied, for residential purposes;

(10) "Simulated check" means a document that imitates or resembles a check but
is not a negotiable instrument;

(11) "Table funding agreement" means an agreement wherein a person agrees to
fund mortgage loans to be made in another person's name and to purchase such loans
after they are made; and

(12) "Warehouse agreement" means an agreement to provide credit to a person to
enable the person to have funds to make mortgage loans and hold such loans pending
sale to other persons."

(b) No licensee shall employ or retain an originator without first registering such
originator under sections 36a-485 to 36a-498a, inclusive, provided such registration
shall not be required for any originator who is registered by such licensee under sections
36a-510 to 36a-524, inclusive. No individual may act as an originator without being
registered, or act as an originator, as defined in sections 36a-485 and 36a-510, for more
than one person. The registration of an originator is not effective during any period when
such originator is not associated with a licensee. Both the originator and the licensee shall
promptly notify the commissioner, in writing, of the termination of employment or
services of an originator.

(c) Each first mortgage loan negotiated, solicited, placed, found or made without a
license or registration shall constitute a separate violation for purposes of section 36a-50.

*Note: On and after September 30, 2008, this section, as amended by section 5 of
public act 07-156, is to read as follows:

"Sec. 36a-486. (Formerly Sec. 36-440a). License required. Violations. (a) No
person shall engage in the business of making first mortgage loans or act as a first
mortgage broker in this state unless such person has first obtained the required license
in accordance with the provisions of sections 36a-485 to 36a-498a, inclusive. A first
mortgage correspondent lender shall not be deemed to be acting as a first mortgage
lender if such first mortgage correspondent lender makes a loan utilizing its own funds
in a situation where another person does not honor such person's commitment to fund
the loan.

(b) No person licensed as a mortgage lender or first mortgage broker shall employ
or retain an originator unless such originator is licensed under sections 36a-485 to 36a-498a, inclusive, provided such licensure shall not be required for any originator who is
licensed under sections 36a-510 to 36a-524, inclusive. No individual may act as an
originator without being licensed, or act as an originator, as defined in sections 36a-485
and 36a-510, for more than one person. The license of an originator is not effective
during any period when such originator is not associated with a licensed mortgage lender
or first mortgage broker. Both the originator and the mortgage lender and first mortgage
broker shall promptly notify the commissioner, in writing, of the termination of employment or services of an originator.

(c) Each first mortgage loan negotiated, solicited, placed, found or made without a
license shall constitute a separate violation for purposes of section 36a-50."

Sec. 36a-488. (Formerly Sec. 36-440c). *(See end of section for amended version and effective date.) License as first mortgage lender, first mortgage correspondent lender or first mortgage broker. Prerequisites. Application for license or registration. (a)(1) The commissioner shall not issue a license as a first mortgage lender, a
first mortgage correspondent lender or a first mortgage broker to any person unless
such person meets the following tangible net worth and experience requirements, as
applicable: (A) The minimum tangible net worth requirement for a first mortgage lender
shall be two hundred fifty thousand dollars and the minimum tangible net worth requirement for a first mortgage correspondent lender and a first mortgage broker shall be
twenty-five thousand dollars, and (B) a mortgage lender shall have, at the location for
which the license is sought, a person with supervisory authority over the lending activities who has at least three years' experience in the mortgage lending business within
the five years immediately preceding the application for the license and a first mortgage
broker shall have, at the location for which the license is sought, a person with supervisory authority over the brokerage activities who has at least three years' experience in
the mortgage lending or mortgage brokerage business within the five years immediately
preceding the application for the license, provided such experience requirements shall
not apply to any person whose license is renewed effective October 1, 2002.

(2) Each licensee shall maintain the net worth required by this subsection and shall
promptly notify the commissioner if such licensee's net worth falls below the net worth
required by this subsection.

(b) The commissioner may issue a first mortgage lender license, a first mortgage
correspondent lender license, or a first mortgage broker license. Each first mortgage
lender licensee may also act as a first mortgage correspondent lender and a first mortgage
broker, and each first mortgage correspondent lender licensee may also act as a first
mortgage broker. An application for a license or renewal of such license shall be made
under oath and on a form provided by the commissioner. The application shall include:
(1) The type of license sought; (2) the name and address of the applicant; (3) the location
for which the license is sought; (4) the name and address of each member, partner,
officer, director, authorized agent and shareholder owning ten per cent or more of the
outstanding stock, as applicable; (5) if the applicant is a trust or the lead lender in one
or more participation loans, the name and address of each trustee or lead lender and
each beneficiary of the trust or other participant lenders in all outstanding participation
loans; (6) a financial statement as of a date not more than six months prior to the filing
of the application which reflects tangible net worth, and if such financial statement is
unaudited, the proprietor, general partner, or duly authorized officer, trustee or member
shall swear to its accuracy under oath before a notary public; (7) evidence that the person
with supervisory authority over the lending or brokerage activities at the location for
which the license is sought meets the experience required by subsection (a) of this
section; (8) an application for registration of each originator or prospective originator
of the applicant at such location; and (9) such other information pertaining to the applicant, the applicant's background, the background of its principals and employees, and
the applicant's activities as the commissioner may require.

(c) An application for registration of an originator or renewal of such registration
shall be made on a form provided by the commissioner.

(d) It shall be considered a violation of section 36a-53a if a licensee files an application for registration of an originator or for renewal of such registration with knowledge
that such application contains a material misstatement by an originator.

*Note: On and after September 30, 2008, this section, as amended by section 2 of
public act 07-91 and section 6 of public act 07-156, is to read as follows:

"Sec. 36a-488. (Formerly Sec. 36-440c). License as first mortgage lender, first
mortgage correspondent lender or first mortgage broker. Prerequisites. Application for license. (a)(1) The commissioner shall not issue a license as a first mortgage
lender, a first mortgage correspondent lender or a first mortgage broker to any person
unless such person meets the following tangible net worth and experience requirements,
as applicable: (A) The minimum tangible net worth requirement for a first mortgage
lender shall be two hundred fifty thousand dollars and the minimum tangible net worth
requirement for a first mortgage correspondent lender and a first mortgage broker shall
be twenty-five thousand dollars, and (B) a mortgage lender shall have, at the location
for which the license is sought, a person with supervisory authority over the lending
activities who has at least three years' experience in the mortgage lending business
within the five years immediately preceding the application for the license and a first
mortgage broker shall have, at the location for which the license is sought, a person
with supervisory authority over the brokerage activities who has at least three years'
experience in the mortgage lending or mortgage brokerage business within the five years
immediately preceding the application for the license.

(2) Each licensee shall maintain the net worth required by this subsection and shall
promptly notify the commissioner if such licensee's net worth falls below the net worth
required by this subsection.

(b) The commissioner may issue a first mortgage lender license, a first mortgage
correspondent lender license, or a first mortgage broker license. Each first mortgage
lender licensee may also act as a first mortgage correspondent lender and a first mortgage
broker, and each first mortgage correspondent lender licensee may also act as a first
mortgage broker. An application for a license or renewal of such license shall be made
under oath and on a form provided by the commissioner. The application shall include:
(1) The type of license sought; (2) the name and address of the applicant; (3) the location
for which the license is sought; (4) the name and address of each member, partner,
officer, director, authorized agent and shareholder owning ten per cent or more of the
outstanding stock, as applicable; (5) if the applicant is a trust or the lead lender in one
or more participation loans, the name and address of each trustee or lead lender and
each beneficiary of the trust or other participant lenders in all outstanding participation
loans; (6) a financial statement as of a date not more than six months prior to the filing
of the application which reflects tangible net worth, and if such financial statement is
unaudited, the proprietor, general partner, or duly authorized officer, trustee or member
shall swear to its accuracy under oath before a notary public; (7) evidence that the person
with supervisory authority over the lending or brokerage activities at the location for
which the license is sought meets the experience required by subsection (a) of this
section; and (8) such other information pertaining to the applicant, the applicant's background, the background of its principals and employees, and the applicant's activities
as the commissioner may require. The commissioner may conduct a criminal history
records check of the applicant, of each member, partner, officer or director of the applicant and of the person with supervisory authority at the location for which the license
is sought, and require the applicant to submit the fingerprints of such persons as part of
the application. The application shall be filed with the national mortgage licensing system, which shall process the fingerprints through the Federal Bureau of Investigation.

(c) An application for an originator license or renewal of such license shall be made
on a form provided by the commissioner. The commissioner may conduct a criminal
history records check of the applicant and require the applicant to submit fingerprints
as part of the application. The application shall be filed with the national mortgage
licensing system, which shall process the fingerprints through the Federal Bureau of
Investigation."

History: P.A. 89-347 amended Subsec. (b) by inserting new Subdiv. (4) re the applicant's status as a lender or a broker
and renumbered the remaining Subdiv.; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440c
transferred to Sec. 36a-488 in 1995; P.A. 99-36 made a technical change in Subsec. (a); P.A. 02-111 replaced former
Subsec. (a) with new provisions re obtaining license as first mortgage lender, first mortgage correspondent lender or first
mortgage broker and re obligation to notify commissioner if net worth falls below requisite net worth, amended Subsec.
(b) to reflect commissioner's authority to issue first mortgage lender license, first mortgage correspondent lender license
and first mortgage broker license and to revise application requirements and added new Subsec. (c) re application for
registration of originator; P.A. 06-45 added Subsec. (d) to provide that filing application for registration of originator with
knowledge that application contains a material misstatement by originator shall be a violation of Sec. 36a-53a, effective
May 8, 2006; P.A. 07-91 amended Subsec. (d) to provide that filing application for renewal of registration of originator
with knowledge that application contains a material misstatement by originator shall be a violation of Sec. 36a-53a; P.A.
07-156 amended Subsec. (a)(1) to delete proviso re inapplicability of experience requirements to any person whose license
is renewed effective October 1, 2002, amended Subsec. (b) to authorize commissioner to conduct a criminal history records
check of applicants and key persons of such applicants, to require applicants to submit fingerprints of such persons, and
to require filing of applications with the national mortgage licensing system, amended Subsec. (c) to authorize commissioner
to conduct criminal history records check of applicant for an originator license, to require applicant to submit fingerprints
as part of application, and to require filing application with such system, and deleted former Subsec. (d) and language in
Subsecs. (b)(8) and (c) re registration of originator and substituted language re originator license in Subsec. (c), effective
September 30, 2008.

Sec. 36a-489. (Formerly Sec. 36-440d). *(See end of section for amended version and effective date.) Application for license or registration. Denial of application for license or registration. (a) If the commissioner finds, upon the filing of an
application for a license, that the applicant meets the requirements of subsection (a) of
section 36a-488, and that the financial responsibility, character, reputation, integrity
and general fitness of the applicant and of the partners thereof if the applicant is a
partnership, of the members if the applicant is a limited liability company or association,
and of the officers, directors and principal employees if the applicant is a corporation,
are such as to warrant belief that the business will be operated soundly and efficiently,
in the public interest and consistent with the purposes of sections 36a-485 to 36a-498a,
inclusive, the commissioner may thereupon issue the applicant the license. If the commissioner fails to make such findings, or if the commissioner finds that the applicant
has made a material misstatement in such application or in the application for registration
of an originator, or files an application for registration of an originator with knowledge
that such application contains a material misstatement by an originator, the commissioner shall not issue a license, and shall notify the applicant of the denial and the reasons
for such denial. Any denial of an application by the commissioner shall, when applicable,
be subject to the provisions of section 46a-80.

(b) Upon the filing of an application for registration, the commissioner shall register
the originator named in the application unless the commissioner finds that such originator or the applicant has made a material misstatement in the application or that the
financial responsibility, character, reputation, integrity and general fitness of such originator are not such as to warrant belief that granting such registration would be in the
public interest and consistent with the purposes of sections 36a-485 to 36a-498a, inclusive. If the commissioner denies registration, the commissioner shall notify such originator and the applicant filing the application of the denial and the reasons for such denial.
Any denial of an application by the commissioner shall, when applicable, be subject to
the provisions of section 46a-80. A registration shall remain in force and effect until it
has been surrendered, revoked, suspended or expires in accordance with the provisions
of sections 36a-485 to 36a-498a, inclusive.

*Note: On and after September 30, 2008, this section, as amended by section 7 of
public act 07-156, is to read as follows:

"Sec. 36a-489. (Formerly Sec. 36-440d). Application for license. Denial of application for license. (a) If the commissioner finds, upon the filing of an application
for a mortgage lender or first mortgage broker license, that the applicant meets the
requirements of subsection (a) of section 36a-488, and that the financial responsibility,
character, reputation, integrity and general fitness of the applicant and of the partners
thereof if the applicant is a partnership, of the members if the applicant is a limited
liability company or association, and of the officers, directors and principal employees
if the applicant is a corporation, are such as to warrant belief that the business will be
operated soundly and efficiently, in the public interest and consistent with the purposes
of sections 36a-485 to 36a-498a, inclusive, the commissioner may thereupon issue the
applicant the license. If the commissioner fails to make such findings, or if the commissioner finds that the applicant has made a material misstatement in such application, the
commissioner shall not issue a license, and shall notify the applicant of the denial and
the reasons for such denial. Any denial of an application by the commissioner shall,
when applicable, be subject to the provisions of section 46a-80.

(b) Upon the filing of an application for an originator license, the commissioner
shall license the originator named in the application unless the commissioner finds that
such applicant has made a material misstatement in the application or that the financial
responsibility, character, reputation, integrity and general fitness of such originator are
not such as to warrant belief that granting such license would be in the public interest
and consistent with the purposes of sections 36a-485 to 36a-498a, inclusive. If the commissioner denies an application for an originator license, the commissioner shall notify
such applicant of the denial and the reasons for such denial. Any denial of an application
by the commissioner shall, when applicable, be subject to the provisions of section 46a-80. A license shall remain in force and effect until it has been surrendered, revoked,
suspended or expires in accordance with the provisions of sections 36a-485 to 36a-498a,
inclusive."

History: P.A. 89-347 extended the application of the section to mortgage brokers; P.A. 94-122 made technical changes,
effective January 1, 1995; Sec. 36-440d transferred to Sec. 36a-489 in 1995; P.A. 99-36 made technical changes; P.A. 02-111 designated existing provisions as Subsec. (a) and amended same by requiring commissioner to find that applicant
meets requirements of Sec. 36a-488(a), providing that application requirements extend to "partners" in a partnership, and
adding provisions re extending application requirements to "members if the applicant is a limited liability company", re
denial of license application based on material misstatement in application, and re denial of application subject to provisions
of Sec. 46a-80 and added Subsec. (b) re application for registration of originator; P.A. 04-69 substituted "36a-498a" for
"36a-498"; P.A. 06-45 amended Subsec. (a) to require commissioner to deny application for license if commissioner
finds that applicant made a material misstatement in application for registration of originator or files application for such
registration with knowledge that application contains a material misstatement by originator, and amended Subsec. (b) to
require commissioner to register originator named in application unless commissioner finds that originator has made a
material misstatement in application and to make technical changes, effective May 8, 2006; P.A. 07-156 replaced language
re application for registration of originator and registration with language re application for originator license and license
and made conforming changes, effective September 30, 2008.

Sec. 36a-490. (Formerly Sec. 36-440e). *(See end of section for amended version and effective date.) License. (a) Each license shall state the location at which the
business is to be conducted and shall state fully the name of the licensee. If the licensee
desires to make first mortgage loans in more than one location or to act as a first mortgage
broker in more than one location, the licensee shall procure a license for each location
where the business is to be conducted. Each license shall be maintained at the location
for which the license was issued and shall be available for public inspection. Such license
shall not be transferable or assignable. No licensee shall use any name other than the
name stated on the license issued by the commissioner.

(b) A licensee may change the name or location specified on its license if (1) at least
twenty-one calendar days prior to such change, the licensee notifies the commissioner,
in writing, on a form satisfactory to the commissioner, and provides a bond rider or
endorsement to the surety bond on file with the commissioner that reflects the new name
or location, and (2) the commissioner does not disapprove such change, in writing,
or request further information within such twenty-one-day period. The licensee shall
promptly notify the commissioner, in writing, of any other change in the information
provided in the application for license or most recent renewal of such license.

(c) Each license shall remain in force and effect until it has been surrendered, revoked, suspended or expires in accordance with the provisions of sections 36a-485 to
36a-498a, inclusive.

*Note: On and after September 30, 2008, this section, as amended by section 3 of
public act 07-91 and section 8 of public act 07-156, is to read as follows:

"Sec. 36a-490. (Formerly Sec. 36-440e). License. (a) Each mortgage lender and
first mortgage broker license shall state the location at which the business is to be conducted and shall state fully the name of the licensee. If the licensee desires to make first
mortgage loans in more than one location or to act as a first mortgage broker in more
than one location, the licensee shall procure a license for each location where the business
is to be conducted. Each license shall be maintained at the location for which the license
was issued and shall be available for public inspection. Such license shall not be transferable or assignable. No licensee shall use any name other than the name stated on the
license issued by the commissioner.

(b) A licensee may change the name or location specified on its license if (1) at least
twenty-one calendar days prior to such change, the licensee notifies the commissioner,
in writing, on a form satisfactory to the commissioner, and provides a bond rider or
endorsement to the surety bond on file with the commissioner that reflects the new name
or location, and (2) the commissioner does not disapprove such change, in writing,
or request further information within such twenty-one-day period. The licensee shall
promptly notify the commissioner, in writing, of any other change in the information
provided in the application for license or most recent renewal of such license.

(c) Each license shall remain in force and effect until it has been surrendered, revoked, suspended or expires in accordance with the provisions of sections 36a-485 to
36a-498a, inclusive."

History: P.A. 89-347 amended Subsec. (a) by adding the reference to a licensee acting as a mortgage broker in more
than one location; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440e transferred to Sec. 36a-490 in 1995; P.A. 97-22 made a technical change in Subsec. (a); P.A. 02-111 amended Subsec. (a) by changing requirement
re license from "prominently posted in each place of business of the licensee" to "maintained at the location for which the
license was issued and shall be available for public inspection", by changing requirement re change of location from
prior approval to prior written notice and by making technical changes, amended Subsec. (b) by deleting former notice
requirements and adding provision requiring licensee to promptly notify commissioner of any change in the information
provided in the application and amended Subsec. (c) by replacing reference to Sec. 36a-495 with reference to Sec. 36a-498; P.A. 04-69 amended Subsec. (c) to substitute "36a-498a" for "36a-498"; P.A. 07-91 amended Subsec. (a) to delete
provision requiring only prior written notice to commissioner for any change of location of a licensee, and amended Subsec.
(b) to allow licensee to change name or location specified on its license if, at least 21 calendar days prior to change, licensee
provides written notice to commissioner on a form satisfactory to commissioner and a bond rider or endorsement to surety
bond on file and commissioner does not disapprove change, in writing, or request further information within such 21-day
period; P.A. 07-156 amended Subsec. (a) to insert "mortgage lender and first mortgage broker" re license, effective September 30, 2008.

Sec. 36a-491. (Formerly Sec. 36-440f). *(See end of section for amended version and effective date.) License and registration fees. Automatic suspension of
license or registration. Notice. Opportunity for hearing. (a)(1) Each applicant for a
first mortgage lender license or a first mortgage correspondent lender license shall, at
the time of making such application, pay to the commissioner a license fee of eight
hundred dollars, provided if such application is filed not earlier than one year before
the date such license will expire, the applicant shall pay to the commissioner a license
fee of four hundred dollars. Each applicant for a first mortgage broker license shall, at
the time of making such application, pay to the commissioner a license fee of four
hundred dollars, provided if such application is filed not earlier than one year before
the date such license will expire, the applicant shall pay to the commissioner a license
fee of two hundred dollars. Each license issued pursuant to section 36a-489 shall expire
at the close of business on September thirtieth of the even-numbered year following its
issuance unless such license is renewed. Such licensee shall, on or before September
first of the year in which the license expires, pay to the commissioner the appropriate
license fee as provided in this section for the succeeding two years, commencing October
first, together with such renewal application as the commissioner may require. Any
renewal application filed with the commissioner after September first shall be accompanied by a one-hundred-dollar late fee and any such filing shall be deemed to be timely
and sufficient for purposes of subsection (b) of section 4-182. Whenever an application
for a license, other than a renewal application, is filed under sections 36a-485 to 36a-498a, inclusive, by any person who was a licensee under said sections and whose license
expired less than sixty days prior to the date such application was filed, such application
shall be accompanied by a one-hundred-dollar processing fee in addition to the application fee.

(2) A licensee filing an application for registration of an originator shall, at the time
of making such application, pay to the commissioner a registration fee of one hundred
dollars for each such originator. Each registration shall expire at such time as the licensee's license expires unless such registration is renewed. Such licensee shall file an application for renewal of the registration and pay to the commissioner the appropriate registration fee as provided in this subsection for the succeeding two years, commencing
October first.

(3) (A) If the commissioner determines that a check filed with the commissioner
to pay a license fee under subdivision (1) of this subsection has been dishonored, the
commissioner shall automatically suspend the license or a renewal license that has been
issued but is not yet effective. The commissioner shall give the licensee notice of the
automatic suspension pending proceedings for revocation or refusal to renew and an
opportunity for a hearing on such actions in accordance with section 36a-51.

(B) If the commissioner determines that a check filed with the commissioner to pay
a registration fee has been dishonored, the commissioner shall automatically suspend
the registration or a registration that has been issued but is not yet effective. The commissioner shall give the originator notice of the automatic suspension and the licensee notice
of the automatic suspension pending proceedings for revocation or refusal to renew and
an opportunity for a hearing on such actions in accordance with section 36a-51.

(b) No abatement of the license or registration fee shall be made if the license or
registration is surrendered, revoked or suspended prior to the expiration of the period
for which it was issued. All fees required by this section shall be nonrefundable.

*Note: On and after September 30, 2008, this section, as amended by section 9 of
public act 07-156, is to read as follows:

"Sec. 36a-491. (Formerly Sec. 36-440f). License and processing fees. Expiration of licenses. Fees nonrefundable. (a)(1) Each applicant for a first mortgage lender
license, a first mortgage correspondent lender license or a first mortgage broker license
shall, at the time of making such application, pay to the national mortgage licensing
system the required license fee and processing fee for an initial or renewal application.
Each license issued pursuant to section 36a-489 shall expire at the close of business on
December thirty-first of the year following its issuance unless such license is renewed.

(2) Each applicant for an originator license shall, at the time of making such application, pay to the national mortgage licensing system the required license fee and processing fee for an initial or renewal application. Each such license shall expire at the
close of business on December thirty-first of the year following its issuance unless such
license is renewed.

(b) No abatement of the license fee shall be made if the license is surrendered,
revoked or suspended prior to the expiration of the period for which it was issued. All
fees required by this section shall be nonrefundable."

History: P.A. 88-150 amended Subsec. (a) by providing that the license fee is nonrefundable and adding the provision
re the expiration of licenses on September thirtieth; P.A. 89-347 added references to mortgage brokers, establishing license
fee for mortgage brokers; P.A. 92-89 increased the fee applicable to lender's and combination licenses from $250 to $400
and increased the fee applicable to broker's licenses from $100 to $200; P.A. 94-104 changed the license renewal deadline
from September tenth to September first and added a $100 late fee in Subsec. (a), and added Subsec. (a)(2) re applications
filed by a licensee whose license expired within 60 days of his application; Sec. 36-440f transferred to Sec. 36a-491 in
1995; P.A. 96-71 clarified that all license fees required by this section are nonrefundable, effective July 1, 1996; P.A. 99-36 made a technical change in Subsec. (a); P.A. 02-111 amended Subsec. (a) by providing for license expiration at the
close of business on September thirtieth of the even-numbered year following its issuance unless renewed, adding provisions
re fee of $800 for first mortgage lender and first mortgage correspondent lender licenses and fee of $400 for first mortgage
broker license, adding provisions re lesser fee if application filed not earlier than one year before expiration date, making
conforming and technical changes and incorporating provisions of existing Subdiv. (2) into Subdiv. (1) and adding new
Subdiv. (2) re application and fees for registration of originator, and amended Subsec. (b) by adding "or registration"; P.A.
04-69 amended Subsec. (a) to change reference to each license issued pursuant to section "36a-489", in lieu of "this"
section, and to substitute "36a-498a" for "36a-498" in Subdiv. (1), and add Subdiv. (3) requiring commissioner to automatically suspend license or registration if commissioner determines that a check filed to pay the license or registration fee has
been dishonored and requiring commissioner to give notice of the automatic suspension pending proceedings for revocation
or refusal to renew and an opportunity for a hearing in accordance with Sec. 36a-51; P.A. 05-46 amended Subsec. (a)(1)
to provide that renewal application filed with commissioner after September first, accompanied by late fee, shall be deemed
to be timely and sufficient for purposes of Sec. 4-182(b); P.A. 06-45 amended Subsec. (a)(2) to delete proviso re prorated
registration fee of $50 for originator for application filed not earlier than one year before date license expires; P.A. 07-156
amended Subsec. (a)(1) to delete requirement that applicants pay various license fees to commissioner and substitute
requirement that applicants, including applicants for a first mortgage broker license, pay the required license fee and
processing fee for an initial or renewal application to the national mortgage licensing system and to change date of expiration
of licenses issued pursuant to Sec. 36a-489 from September 30th of even-numbered year following issuance to December
31 of year following issuance, amended Subsec. (a)(2) to delete references to registration and to substitute references to
license re originators, to require applicants for originator license to pay required license and processing fees for an initial
or renewal application to the national mortgage licensing system in lieu of commissioner and to provide that license shall
expire on December 31 of year following issuance, deleted former Subsec. (a)(3), and amended Subsec. (b) to delete
references to registration, effective September 30, 2008.

Sec. 36a-492. (Formerly Sec. 36-440g). *(See end of section for amended version of subsection (a) and effective date.) Surety bond required. Cancellation of
bond. Notice. Automatic suspension of license. Notice. Opportunity for hearing.
*(a) No such license, and no renewal thereof, shall be granted unless the applicant has
filed a bond with the commissioner written by a surety authorized to write such bonds
in this state, in the sum of forty thousand dollars, the form of which shall be approved
by the Attorney General. Such bond shall be conditioned upon such licensee faithfully
performing any and all written agreements or commitments with or for the benefit of
borrowers and prospective borrowers, truly and faithfully accounting for all funds received from a borrower or prospective borrower by the licensee in the licensee's capacity
as a mortgage lender or a first mortgage broker, and conducting such mortgage business
consistent with the provisions of sections 36a-485 to 36a-498a, inclusive. Any borrower
or prospective borrower who may be damaged by failure to perform any written
agreements or commitments, or by the wrongful conversion of funds paid by a borrower
or prospective borrower to a licensee, may proceed on such bond against the principal
or surety thereon, or both, to recover damages. The commissioner may proceed on such
bond against the principal or surety thereon, or both, to collect any civil penalty imposed
upon the licensee pursuant to subsection (a) of section 36a-50. The proceeds of the bond,
even if commingled with other assets of the licensee, shall be deemed by operation of
law to be held in trust for the benefit of such claimants against the licensee in the event
of bankruptcy of the licensee and shall be immune from attachment by creditors and
judgment creditors. The bond shall run concurrently with the period of the license
granted to the applicant, and the aggregate liability under the bond shall not exceed the
penal sum of the bond.

(b) The surety company shall have the right to cancel the bond at any time by a
written notice to the licensee stating the date cancellation shall take effect. Such notice
shall be sent by certified mail to the licensee at least thirty days prior to the date of
cancellation. A surety bond shall not be cancelled unless the surety company notifies
the commissioner in writing not less than thirty days prior to the effective date of cancellation. The commissioner shall automatically suspend the license on the date the cancellation takes effect, unless the surety bond has been replaced or renewed. The commissioner shall give the licensee notice of the automatic suspension pending proceedings
for revocation or refusal to renew and an opportunity for a hearing on such actions in
accordance with section 36a-51.

*Note: On and after September 30, 2008, subsection (a) of this section, as amended
by section 10 of public act 07-156, is to read as follows:

"(a) No mortgage lender or first mortgage broker license, and no renewal thereof,
shall be granted unless the applicant has filed a bond with the commissioner written by
a surety authorized to write such bonds in this state, in the sum of forty thousand dollars,
the form of which shall be approved by the Attorney General. Such bond shall be conditioned upon such licensee faithfully performing any and all written agreements or commitments with or for the benefit of borrowers and prospective borrowers, truly and
faithfully accounting for all funds received from a borrower or prospective borrower
by the licensee in the licensee's capacity as a mortgage lender or a first mortgage broker,
and conducting such mortgage business consistent with the provisions of sections 36a-485 to 36a-498a, inclusive. Any borrower or prospective borrower who may be damaged
by failure to perform any written agreements or commitments, or by the wrongful conversion of funds paid by a borrower or prospective borrower to a licensee, may proceed
on such bond against the principal or surety thereon, or both, to recover damages. The
commissioner may proceed on such bond against the principal or surety thereon, or
both, to collect any civil penalty imposed upon the licensee pursuant to subsection (a)
of section 36a-50. The proceeds of the bond, even if commingled with other assets of
the licensee, shall be deemed by operation of law to be held in trust for the benefit of
such claimants against the licensee in the event of bankruptcy of the licensee and shall
be immune from attachment by creditors and judgment creditors. The bond shall run
concurrently with the period of the license granted to the applicant, and the aggregate
liability under the bond shall not exceed the penal sum of the bond."

History: P.A. 89-347 extended the application of the section to mortgage brokers; P.A. 90-277 reduced the required bond
sum from $50,000 to $40,000; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440g transferred to
Sec. 36a-492 in 1995; P.A. 99-36 made technical changes; P.A. 02-111 added provision re performance "for the benefit" of
borrowers and prospective borrowers, changed any "person" to any "borrower or perspective borrower", added provisions re
commissioner to proceed on bond to collect civil penalty imposed pursuant to Sec. 36a-50(a) and re bond proceeds deemed
to be held in trust and immune from attachment, and made conforming and technical changes; P.A. 04-69 designated
existing provisions as Subsec. (a), substituting "36a-498a" for "36a-498" therein, and added Subsec. (b) giving surety
company the right to cancel the bond at any time by written notice to licensee, specifying manner of notice, requiring
surety company to notify commissioner in writing prior to cancellation, requiring commissioner to automatically suspend
license on date cancellation takes effect, unless bond has been replaced or renewed, and requiring commissioner to give
licensee notice of automatic suspension pending proceedings for revocation or refusal to renew and an opportunity for a
hearing in accordance with Sec. 36a-51; P.A. 07-156 amended Subsec. (a) to insert "mortgage lender or first mortgage
broker" re license, effective September 30, 2008.

Sec. 36a-493. (Formerly Sec. 36-440h). *(See end of section for amended version of subsection (a) and effective date.) Records to be maintained by licensee.
*(a) Each licensee shall maintain adequate records of each loan transaction at the location
named in the license, or shall make such records available at such location not later than
five business days after requested by the commissioner to do so. Such records shall
provide the following information: (1) A copy of any disclosures required under part
III of chapter 669; (2) whether the licensee acted as a mortgage lender, a first mortgage
broker or both; (3) if the licensee is acting as a mortgage lender, and retains the first
mortgage loan or receives payments thereon, an adequate loan history for those loans
retained or upon which payments are received, itemizing the amount and date of each
payment and the unpaid balance at all times; (4) the purpose for which the loan was
made; (5) the original or an exact copy of the note and mortgage deed; (6) a statement
signed by the borrowers acknowledging the receipt of such statement which discloses
the full amount of any fee, commission or consideration paid to the first mortgage broker
for all services in connection with the mortgage loan; and (7) the name and address of
the broker, if any, involved in the loan transaction.

(b) For each loan that is made and serviced by a licensee, the licensee shall retain
records of such loan transaction for not less than two years following the final payment
thereon, or the assignment of such loan, whichever occurs first, or such longer period
as may be required by any other provision of law.

(c) For each loan transaction in which a licensee acts as a mortgage lender or first
mortgage broker but does not service the loan, the licensee shall retain the records of
such loan transaction for not less than two years from the date of the transaction or such
longer period as may be required by any other provision of law.

(d) Any person who furnishes to a licensee any records required to be maintained
under this section or any information necessary to complete such records may charge
a fee to the licensee in an amount not to exceed fifty dollars.

*Note: On and after September 30, 2008, subsection (a) of this section, as amended
by section 11 of public act 07-156, is to read as follows:

"(a) Each mortgage lender and first mortgage broker licensee shall maintain adequate
records of each loan transaction at the location named in the license, or shall make such
records available at such location not later than five business days after requested by
the commissioner to do so. Such records shall provide the following information: (1)
A copy of any disclosures required under part III of chapter 669; (2) whether the licensee
acted as a mortgage lender, a first mortgage broker or both; (3) if the licensee is acting
as a mortgage lender, and retains the first mortgage loan or receives payments thereon,
an adequate loan history for those loans retained or upon which payments are received,
itemizing the amount and date of each payment and the unpaid balance at all times; (4)
the purpose for which the loan was made; (5) the original or an exact copy of the note
and mortgage deed; (6) a statement signed by the borrowers acknowledging the receipt
of such statement which discloses the full amount of any fee, commission or consideration paid to the first mortgage broker for all services in connection with the mortgage
loan; and (7) the name and address of the broker, if any, involved in the loan transaction."

History: P.A. 89-347 amended Subsec. (a) by inserting new Subdiv. (2) requiring the licensee to state whether it acted
as a mortgage lender, a mortgage broker or any combination thereof and renumbering the remaining subdivisions in Subsec.
(a) and adding Subsec. (a)(6) re the borrower's statement, made a technical change in Subsec. (c) and added Subsec. (d)
re record retention requirements for mortgage brokers; P.A. 90-184 added Subsec. (e) authorizing a fee to be charged for
records or information furnished to a licensee; P.A. 94-122 changed "commissioner or his representative" to "commissioner" and "any combination thereof" to "both" in Subsec. (a), deleted Subsec. (b) re examination of books and records
of licensees, and relettered former Subsecs. (c) through (e) as Subsecs. (b) through (d), effective January 1, 1995; Sec. 36-440h transferred to Sec. 36a-493 in 1995; P.A. 02-111 amended Subsec. (a) to change where records are maintained or
made available from "place of business" to "location" named in the license, to replace references to "mortgage broker"
with reference to "first mortgage broker", to add new Subdiv. (7) re name and address of broker and to make technical
changes, amended Subsec. (b) to increase record retention period for licensees who make or service loans from one to two
years following final payment or assignment, or such longer retention period as may be required by law, and amended
Subsec. (c) by deleting reference to licensee acting as a "mortgage broker" and substituting "mortgage lender or first
mortgage broker but does not service the loan" and by making technical changes; P.A. 07-156 amended Subsec. (a) to
insert "mortgage lender and first mortgage broker" re licensee, effective September 30, 2008.

Sec. 36a-494. (Formerly Sec. 36-440i). *(See end of section for amended version and effective date.) Suspension, revocation or refusal to renew license or registration or taking of other action. (a)(1) The commissioner may suspend, revoke or
refuse to renew any license or take any other action, in accordance with the provisions
of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-485 to 36a-498a, inclusive,
or if the commissioner finds that the licensee or any proprietor, director, officer, member,
partner, shareholder, trustee, employee or agent of such licensee has done any of the
following: (A) Made any material misstatement in the application; (B) committed any
fraud, misappropriated funds or misrepresented, concealed, suppressed, intentionally
omitted or otherwise intentionally failed to disclose any of the material particulars of
any first mortgage loan transaction, including disclosures required by subdivision (6)
of subsection (a) of section 36a-493, or part III of chapter 669 or regulations adopted
pursuant thereto, to anyone entitled to such information; (C) violated any of the provisions of this title or of any regulations adopted pursuant thereto, or any other law or
regulation applicable to the conduct of its business; or (D) failed to perform any
agreement with a licensee or a borrower.

(2) The commissioner may suspend, revoke or refuse to renew any registration of
an originator or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an
application for a registration under sections 36a-485 to 36a-498a, inclusive, or if the
commissioner finds that the registrant has committed any fraud, misappropriated funds,
misrepresented any of the material particulars of any first mortgage loan transaction or
has violated any of the provisions of this title or of any regulations adopted pursuant to
such title or any other law or regulation applicable to the conduct of such registrant's
business.

(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-485 to 36a-498a,
inclusive, or any regulation adopted pursuant thereto, or any licensee or registrant has
failed to perform any agreement with a borrower, committed any fraud, misappropriated
funds or misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed to disclose any of the material particulars of any mortgage loan transaction, including disclosures required by subdivision (6) of subsection (a) of section 36a-493, or part III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled
to such information, the commissioner may take action against such person, licensee or
registrant in accordance with sections 36a-50 and 36a-52.

*Note: On and after September 30, 2008, this section, as amended by section 17 of
public act 07-91 and section 12 of public act 07-156, is to read as follows:

"Sec. 36a-494. (Formerly Sec. 36-440i). Suspension, revocation or refusal to
renew license or taking of other action. (a)(1) The commissioner may suspend, revoke
or refuse to renew any mortgage lender or first mortgage broker license or take any
other action, in accordance with the provisions of section 36a-51, for any reason which
would be sufficient grounds for the commissioner to deny an application for such license
under sections 36a-485 to 36a-498a, inclusive, or if the commissioner finds that the
licensee or any proprietor, director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has done any of the following: (A) Made any material
misstatement in the application; (B) committed any fraud, misappropriated funds or
misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally
failed to disclose any of the material particulars of any first mortgage loan transaction,
including disclosures required by subdivision (6) of subsection (a) of section 36a-493,
or part III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled to
such information; (C) violated any of the provisions of this title or of any regulations
adopted pursuant thereto, or any other law or regulation applicable to the conduct of its
business; or (D) failed to perform any agreement with a licensee or a borrower.

(2) The commissioner may suspend, revoke or refuse to renew any originator license
or take any other action, in accordance with the provisions of section 36a-51, for any
reason which would be sufficient grounds for the commissioner to deny an application
for such license under sections 36a-485 to 36a-498a, inclusive, or if the commissioner
finds that the licensee has committed any fraud, misappropriated funds, misrepresented
any of the material particulars of any first mortgage loan transaction or has violated any
of the provisions of this title or of any regulations adopted pursuant to such title or any
other law or regulation applicable to the conduct of such licensee's business.

(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-485 to 36a-498a,
inclusive, or any regulation adopted pursuant thereto, or any licensee has failed to perform any agreement with a borrower, committed any fraud, misappropriated funds or
misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally
failed to disclose any of the material particulars of any mortgage loan transaction, including disclosures required by subdivision (6) of subsection (a) of section 36a-493, or part
III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled to such
information, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52."

History: P.A. 86-403 deleted reference to chapter 657a in Subsec. (a); P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective September 1, 1991; P.A. 89-347 amended Subsec. (a) by adding
failure to make disclosures required by Sec. 36-440h(a)(6) as grounds for suspending, revoking or refusing to renew a
license; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective June 14, 1993;
P.A. 93-194 specified that provisions apply to persons who are not licensed as well as to licensees, effective June 23, 1993;
P.A. 94-122 deleted Subsec. (c) re cease and desist provisions and made technical changes, effective January 1, 1995; Sec.
36-440i transferred to Sec. 36a-494 in 1995; P.A. 99-36 made technical changes; P.A. 00-61 amended Subsec. (b) by
adding language re licensee's failure to perform an agreement with a borrower, effective July 1, 2000; P.A. 02-111 amended
Subsec. (a) by designating existing provisions as Subdiv. (1) and, within said Subdiv., redesignating existing Subdivs. (1)
to (4) as Subparas. (A) to (D), replacing "owner" with "proprietor", adding reference to misappropriated funds in Subpara.
(B), replacing former statutory references with reference to "this title" in Subpara. (C) and adding reference to licensee in
Subpara. (D), and by adding new Subdiv. (2) re commissioner's authority to suspend, revoke or refuse to renew registration
of originator; P.A. 04-69 substituted "36a-498a" for "36a-498" throughout and amended Subsec. (b) to allow commissioner
to take action against violator or licensee in accordance with Sec. 36a-52; P.A. 05-46 amended Subsec. (b) to allow
commissioner to impose civil penalty or issue cease and desist order against licensees and registrants who commit fraud,
misappropriate funds or misrepresent, conceal, suppress, intentionally omit or otherwise intentionally fail to disclose any
material particulars of mortgage loan transaction to anyone entitled to such information; P.A. 06-45 amended Subsec.
(a)(2) to provide that violations of title 36a or regulations or any other law applicable to conduct of registrant's business
are grounds for suspension, revocation or refusal to renew registration of originator, effective May 8, 2006; P.A. 07-91
amended Subsec. (a)(1) and (2) to authorize commissioner to take any other action, in accordance with provisions of Sec.
36a-51, effective June 5, 2007; P.A. 07-156 amended Subsec. (a)(1) to insert "mortgage lender or first mortgage broker"
re license, amended Subsec. (a)(2) to substitute "license" and "licensee" for "registration" and "registrant", and amended
Subsec. (b) to delete references to "registrant", effective September 30, 2008.

*Note: On and after September 30, 2008, this section, as amended by section 13 of
public act 07-156, is to read as follows:

"Sec. 36a-496. (Formerly Sec. 36-440k). Application and referrals from unlicensed first mortgage brokers or originators. No person engaged in the business
of making first mortgage loans in this state, whether licensed in accordance with the
provisions of sections 36a-485 to 36a-498a, inclusive, or exempt from licensing, shall
accept applications or referral of applicants from, or pay a fee to, any first mortgage
broker or originator who is required to be licensed under said sections but is not licensed
to act as such by the commissioner, if the mortgage lender has actual knowledge that
the first mortgage broker or originator is not licensed by the commissioner."

(b) No originator required to be registered pursuant to sections 36a-485 to 36a-498a, inclusive, shall accept payment of any advance fee except an advance fee on behalf
of a licensee. Nothing in this subsection shall be construed as prohibiting the licensee
from paying an originator all or part of an advance fee, provided such advance fee paid
is not refundable under this section.

(c) Subsection (a) of this section shall not apply if: (1) The person providing the
advance fee and the mortgage lender or first mortgage broker agree in writing that the
advance fee shall not be refundable, in whole or in part; and (2) the written agreement
complies in all respects with the provisions of subsection (d) of this section.

(d) An agreement under subsection (c) of this section shall meet all of the following
requirements to be valid and enforceable: (1) The agreement shall be dated, signed by
both parties, and be executed prior to the payment of any advance fee; (2) the agreement
shall expressly state the total advance fee required to be paid and any amount of the
advance fee that shall not be refundable; (3) the agreement shall clearly and conspicuously state any conditions under which the advance fee will be retained by the licensee;
(4) the term "nonrefundable" shall be used to describe each advance fee or portion
thereof to which the term is applicable, and shall appear in boldface type in the agreement
each time it is used; and (5) the form of the agreement shall (A) be separate from any
other forms, contracts, or applications utilized by the licensee, (B) contain a heading in
a size equal to at least ten-point boldface type that shall title the form "AGREEMENT
CONCERNING NONREFUNDABILITY OF ADVANCE FEE", (C) provide for a duplicate copy which shall be given to the person paying the advance fee at the time of
payment of the advance fee, and (D) include such other specifications as the commissioner may by regulation prescribe.

(e) An agreement under subsection (c) of this section that does not meet the requirements of subsection (d) of this section shall be voidable at the election of the person
paying the advance fee.

(f) (1) No mortgage lender or first mortgage broker required to be licensed pursuant
to sections 36a-485 to 36a-498a, inclusive, shall enter into an agreement with or otherwise require any person to pay the mortgage lender or first mortgage broker for any fee,
commission or other valuable consideration lost as a result of such person failing to
consummate a first mortgage loan, provided the mortgage lender or first mortgage broker
may collect such fee, commission or consideration as an advance fee subject to the
requirements of this section.

(2) No first mortgage broker required to be licensed pursuant to sections 36a-485
to 36a-498a, inclusive, shall enter into an agreement with or otherwise require any person
to pay the first mortgage broker any fee, commission or other valuable consideration
for the prepayment of the principal of a first mortgage loan by such person before the
date on which the principal is due.

(g) (1) For the purposes of this subsection:

(A) "Unfair or deceptive act or practice" means (i) the failure to clearly and conspicuously state in the initial phase of the solicitation that the solicitor is not affiliated with
the lender or broker with which the consumer initially applied, (ii) the failure to clearly
and conspicuously state in the initial phase of the solicitation that the solicitation is
based on personal information about the consumer that was purchased, directly or indirectly, from a consumer reporting agency without the knowledge or permission of the
lender or broker with which the consumer initially applied, (iii) the failure in the initial
solicitation to comply with the provisions of the federal Fair Credit Reporting Act relating to prescreening solicitations that use consumer reports, including the requirement
to make a firm offer of credit to the consumer, or (iv) knowingly or negligently using
information from a mortgage trigger lead (I) to solicit consumers who have opted out
of prescreened offers of credit under the federal Fair Credit Reporting Act, or (II) to
place telephone calls to consumers who have placed their contact information on a
federal or state Do Not Call list; and

(B) "Mortgage trigger lead" means a consumer report obtained pursuant to Section
604 (c)(1)(B) of the federal Fair Credit Reporting Act, 15 USC 1681b, where the issuance
of the report is triggered by an inquiry made with a consumer reporting agency in response to an application for credit. "Mortgage trigger lead" does not include a consumer
report obtained by a lender that holds or services existing indebtedness of the applicant
who is the subject of the report.

(2) No mortgage lender or first mortgage broker shall engage in an unfair or deceptive act or practice in soliciting an application for a first mortgage loan when such
solicitation is based, in whole or in part, on information contained in a mortgage trigger
lead. Any violation of this subsection shall be deemed an unfair or deceptive trade
practice under subsection (a) of section 42-110b.

*Note: On and after September 30, 2008, this section, as amended by section 1 of
public act 07-118 and section 14 of public act 07-156, is to read as follows:

"Sec. 36a-498. (Formerly Sec. 36-440m). Refundability of advance fees. Exceptions. Prohibited acts by mortgage lenders and first mortgage brokers re borrowers. (a) Except as provided in subsection (c) of this section, every advance fee paid
or given, directly or indirectly, to a mortgage lender or first mortgage broker required
to be licensed pursuant to sections 36a-485 to 36a-498a, inclusive, shall be refundable.

(b) No originator required to be licensed pursuant to sections 36a-485 to 36a-498a,
inclusive, shall accept payment of any advance fee except an advance fee on behalf of
a mortgage lender or first mortgage broker licensee. Nothing in this subsection shall be
construed as prohibiting the mortgage lender or first mortgage broker licensee from
paying an originator all or part of an advance fee, provided such advance fee paid is not
refundable under this section.

(c) Subsection (a) of this section shall not apply if: (1) The person providing the
advance fee and the mortgage lender or first mortgage broker agree in writing that the
advance fee shall not be refundable, in whole or in part; and (2) the written agreement
complies in all respects with the provisions of subsection (d) of this section.

(d) An agreement under subsection (c) of this section shall meet all of the following
requirements to be valid and enforceable: (1) The agreement shall be dated, signed by
both parties, and be executed prior to the payment of any advance fee; (2) the agreement
shall expressly state the total advance fee required to be paid and any amount of the
advance fee that shall not be refundable; (3) the agreement shall clearly and conspicuously state any conditions under which the advance fee will be retained by the licensee;
(4) the term "nonrefundable" shall be used to describe each advance fee or portion
thereof to which the term is applicable, and shall appear in boldface type in the agreement
each time it is used; and (5) the form of the agreement shall (A) be separate from any
other forms, contracts, or applications utilized by the licensee, (B) contain a heading in
a size equal to at least ten-point boldface type that shall title the form "AGREEMENT
CONCERNING NONREFUNDABILITY OF ADVANCE FEE", (C) provide for a duplicate copy which shall be given to the person paying the advance fee at the time of
payment of the advance fee, and (D) include such other specifications as the commissioner may by regulation prescribe.

(e) An agreement under subsection (c) of this section that does not meet the requirements of subsection (d) of this section shall be voidable at the election of the person
paying the advance fee.

(f) (1) No mortgage lender or first mortgage broker required to be licensed pursuant
to sections 36a-485 to 36a-498a, inclusive, shall enter into an agreement with or otherwise require any person to pay the mortgage lender or first mortgage broker for any fee,
commission or other valuable consideration lost as a result of such person failing to
consummate a first mortgage loan, provided the mortgage lender or first mortgage broker
may collect such fee, commission or consideration as an advance fee subject to the
requirements of this section.

(2) No first mortgage broker required to be licensed pursuant to sections 36a-485
to 36a-498a, inclusive, shall enter into an agreement with or otherwise require any person
to pay the first mortgage broker any fee, commission or other valuable consideration
for the prepayment of the principal of a first mortgage loan by such person before the
date on which the principal is due.

(g) (1) For the purposes of this subsection:

(A) "Unfair or deceptive act or practice" means (i) the failure to clearly and conspicuously state in the initial phase of the solicitation that the solicitor is not affiliated with
the lender or broker with which the consumer initially applied, (ii) the failure to clearly
and conspicuously state in the initial phase of the solicitation that the solicitation is
based on personal information about the consumer that was purchased, directly or indirectly, from a consumer reporting agency without the knowledge or permission of the
lender or broker with which the consumer initially applied, (iii) the failure in the initial
solicitation to comply with the provisions of the federal Fair Credit Reporting Act relating to prescreening solicitations that use consumer reports, including the requirement
to make a firm offer of credit to the consumer, or (iv) knowingly or negligently using
information from a mortgage trigger lead (I) to solicit consumers who have opted out
of prescreened offers of credit under the federal Fair Credit Reporting Act, or (II) to
place telephone calls to consumers who have placed their contact information on a
federal or state Do Not Call list; and

(B) "Mortgage trigger lead" means a consumer report obtained pursuant to Section
604 (c)(1)(B) of the federal Fair Credit Reporting Act, 15 USC 1681b, where the issuance
of the report is triggered by an inquiry made with a consumer reporting agency in response to an application for credit. "Mortgage trigger lead" does not include a consumer
report obtained by a lender that holds or services existing indebtedness of the applicant
who is the subject of the report.

(2) No mortgage lender or first mortgage broker shall engage in an unfair or deceptive act or practice in soliciting an application for a first mortgage loan when such
solicitation is based, in whole or in part, on information contained in a mortgage trigger
lead. Any violation of this subsection shall be deemed an unfair or deceptive trade
practice under subsection (a) of section 42-110b."

History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-440m transferred to Sec. 36a-498 in
1995; P.A. 02-111 replaced references to "mortgage broker" with references to "first mortgage broker" throughout, added
new Subsec. (b) re acceptance of advance fee by originator, redesignated existing Subsecs. (b) to (d) as Subsecs. (c) to (e)
and made technical changes throughout; P.A. 04-69 amended Subsecs. (a) and (b) to substitute "36a-498a" for "36a-498";
P.A. 06-45 added Subsec. (f) to prohibit mortgage lenders and first mortgage brokers from entering into agreements with
borrowers to compensate licensees for fees, commissions or other valuable consideration lost if borrowers fail to close
loan unless compensation is collected as advance fee and to prohibit first mortgage brokers from imposing fees, commissions
or other valuable consideration on borrowers for prepayment of principal of loan, effective May 8, 2006; P.A. 07-118
added Subsec. (g) to define "unfair or deceptive act or practice" and "mortgage trigger lead", to prohibit mortgage lenders
and first mortgage brokers from engaging in an unfair or deceptive act or practice in soliciting application for a first
mortgage loan if solicitation is based in any way on a mortgage trigger lead, and to provide that violation is deemed an
unfair or deceptive trade practice under Sec. 42-110b(a); P.A. 07-156 amended Subsec. (b) to substitute "licensed" for
"registered" and to insert "mortgage lender or first mortgage broker" re licensee, effective September 30, 2008.

Sec. 36a-498a. *(See end of section for amended version and effective date.)
Prepaid finance charges; when prohibited. No licensee under section 36a-489 and
no person exempt from licensure under subdivisions (1), (2), (5) and (6) of section 36a-487 making a first mortgage loan shall charge, impose or cause to be paid, directly or
indirectly, prepaid finance charges that exceed in the aggregate, the greater of five per
cent of the principal amount of the loan or two thousand dollars. If the proceeds of the
loan are used to refinance an existing loan, the aggregate of the prepaid finance charges
for the current refinancing and any previous financings by such licensee or exempt
person or affiliate of such licensee or exempt person within two years of the current
refinancing shall not exceed the greater of five per cent of the principal amount of the
initial loan or two thousand dollars. The provisions of this section shall not prohibit
such licensee or exempt person from charging, imposing or causing to be paid, directly
or indirectly, prepaid finance charges in addition to those permitted by this section in
connection with any additional proceeds received by the borrower in the refinancing,
provided such prepaid finance charges on the additional proceeds shall not exceed five
per cent of the additional proceeds. For purposes of this section, "additional proceeds"
has the meaning given to that term in subdivision (3) of section 36a-746e and "prepaid
finance charge" has the meaning given to that term in subdivision (7) of section 36a-746a.

(P.A. 01-34, S. 13; P.A. 04-69, S. 11; P.A. 06-45, S. 6.)

*Note: On and after September 30, 2008, this section, as amended by section 15 of
public act 07-156, is to read as follows:

Sec. 36a-498a. Prepaid finance charges; when prohibited. No mortgage lender
or first mortgage broker licensee under section 36a-489 and no person exempt from
licensure under subdivisions (1), (2), (5) and (6) of section 36a-487 making a first mortgage loan shall charge, impose or cause to be paid, directly or indirectly, prepaid finance
charges that exceed in the aggregate, the greater of five per cent of the principal amount
of the loan or two thousand dollars. If the proceeds of the loan are used to refinance an
existing loan, the aggregate of the prepaid finance charges for the current refinancing
and any previous financings by such licensee or exempt person or affiliate of such
licensee or exempt person within two years of the current refinancing shall not exceed
the greater of five per cent of the principal amount of the initial loan or two thousand
dollars. The provisions of this section shall not prohibit such licensee or exempt person
from charging, imposing or causing to be paid, directly or indirectly, prepaid finance
charges in addition to those permitted by this section in connection with any additional
proceeds received by the borrower in the refinancing, provided such prepaid finance
charges on the additional proceeds shall not exceed five per cent of the additional proceeds. For purposes of this section, "additional proceeds" has the meaning given to that
term in subdivision (3) of section 36a-746e and "prepaid finance charge" has the meaning given to that term in subdivision (7) of section 36a-746a."

(1) "Advance fee" means any consideration paid or given, directly or indirectly, to
a mortgage lender, secondary mortgage broker or originator required to be licensed or
registered pursuant to sections 36a-510 to 36a-524, inclusive, prior to the closing of a
secondary mortgage loan to any person, including, but not limited to, loan fees, points,
broker's fees or commissions, transaction fees, or similar prepaid finance charges;

(2) "Advertise" or "advertisement" means the use of media, mail, computer, telephone, personal contact or any other means to offer the opportunity for a secondary
mortgage loan;

(3) "Licensee" means any person who is required to be licensed pursuant to section
36a-511;

(5) "Originator" means an individual who is employed or retained by, or otherwise
acts on behalf of, a mortgage lender or secondary mortgage broker that is licensed or
required to be licensed under sections 36a-510 to 36a-524, inclusive, for, or with the
expectation of, a fee, commission or other valuable consideration, to take an application
for or negotiate, solicit, arrange or find a secondary mortgage loan. "Originator" does
not include (1) an officer, if the licensee is a corporation; a general partner, if the licensee
is a partnership; a member, if the licensee is a limited liability company; or a sole proprietor, if the licensee is a sole proprietorship, or (2) an individual whose responsibilities
are limited to clerical and administrative tasks and who does not solicit borrowers, take
applications or negotiate the terms of loans;

(6) "Principal amount of the loan" means the gross loan amount the borrower is
obligated to repay including any prepaid finance charge and other charges which are
financed. The provisions of this subdivision apply to all loans negotiated before, on and
after June 14, 1993;

(7) "Secondary mortgage broker" means a person who, for a fee, commission or
other valuable consideration, directly or indirectly, negotiates, solicits, arranges, places
or finds a secondary mortgage loan that is to be made by a mortgage lender, whether
or not the mortgage lender is required to be licensed under sections 36a-510 to 36a-524,
inclusive;

(8) "Secondary mortgage correspondent lender" means a person engaged in the
business of making secondary mortgage loans in such person's own name where the
loans are not held by such person for more than ninety days and are funded by another
person through a warehouse agreement, table funding agreement or similar agreement;

(9) "Secondary mortgage lender" means a person engaged in the business of making
secondary mortgage loans: (A) In such person's own name utilizing such person's own
funds, or (B) by funding loans through a table funding agreement;

(10) "Secondary mortgage loan" means (A) a loan or an extension of credit, including, but not limited to, an extension of credit pursuant to a contract or an assigned contract
for the sale of goods or services, made to a person, the proceeds of which are to be used
primarily for personal, family or household purposes, and which is secured in whole or
in part by a mortgage upon any interest in one-to-four-family residential owner-occupied
real property located in this state, provided such real property is subject to one or more
prior mortgages, and (B) the renewal or refinancing of any existing loan or extension
of credit described in subparagraph (A) of this subdivision;

(11) "Simulated check" means a document that imitates or resembles a check but
is not a negotiable instrument;

(12) "Table funding agreement" has the meaning given to that term in subdivision
(11) of section 36a-485; and

(13) "Warehouse agreement" has the meaning given to that term in subdivision (12)
of section 36a-485.

(1) "Advance fee" means any consideration paid or given, directly or indirectly, to
a mortgage lender, secondary mortgage broker or originator required to be licensed
pursuant to sections 36a-510 to 36a-524, inclusive, prior to the closing of a secondary
mortgage loan to any person, including, but not limited to, loan fees, points, broker's
fees or commissions, transaction fees, or similar prepaid finance charges;

(2) "Advertise" or "advertisement" means the use of media, mail, computer, telephone, personal contact or any other means to offer the opportunity for a secondary
mortgage loan;

(3) "Licensee" means any person who is required to be licensed pursuant to section
36a-511;

(5) "Originator" means an individual who is employed or retained by a mortgage
lender or secondary mortgage broker that is required to be licensed under sections 36a-510 to 36a-524, inclusive, for, or with the expectation of, a fee, commission or other
valuable consideration, to negotiate, solicit, arrange or find a secondary mortgage loan.
"Originator" does not include an officer, if the mortgage lender or secondary mortgage
broker licensee is a corporation; a general partner, if the licensee is a partnership; a
member, if the licensee is a limited liability company; or a sole proprietor, if the licensee
is a sole proprietorship;

(6) "Principal amount of the loan" means the gross loan amount the borrower is
obligated to repay including any prepaid finance charge and other charges which are
financed. The provisions of this subdivision apply to all loans negotiated before, on and
after June 14, 1993;

(7) "Secondary mortgage broker" means a person who, for a fee, commission or
other valuable consideration, directly or indirectly, negotiates, solicits, arranges, places
or finds a secondary mortgage loan that is to be made by a mortgage lender, whether
or not the mortgage lender is required to be licensed under sections 36a-510 to 36a-524,
inclusive;

(8) "Secondary mortgage correspondent lender" means a person engaged in the
business of making secondary mortgage loans in such person's own name where the
loans are not held by such person for more than ninety days and are funded by another
person through a warehouse agreement, table funding agreement or similar agreement;

(9) "Secondary mortgage lender" means a person engaged in the business of making
secondary mortgage loans: (A) In such person's own name utilizing such person's own
funds, or (B) by funding loans through a table funding agreement;

(10) "Secondary mortgage loan" means (A) a loan or an extension of credit, including, but not limited to, an extension of credit pursuant to a contract or an assigned contract
for the sale of goods or services, made to a person, the proceeds of which are to be used
primarily for personal, family or household purposes, and which is secured in whole or
in part by a mortgage upon any interest in one-to-four-family residential owner-occupied
real property located in this state, provided such real property is subject to one or more
prior mortgages, and (B) the renewal or refinancing of any existing loan or extension
of credit described in subparagraph (A) of this subdivision;

(11) "Simulated check" means a document that imitates or resembles a check but
is not a negotiable instrument;

(12) "Table funding agreement" has the meaning given to that term in subdivision
(11) of section 36a-485; and

(13) "Warehouse agreement" has the meaning given to that term in subdivision (12)
of section 36a-485."

Sec. 36a-511. (Formerly Sec. 36-224b). *(See end of section for amended version and effective date.) License required. Registration of originator. Violations.
(a) No person shall engage in the business of making secondary mortgage loans or act
as a secondary mortgage broker unless such person has first obtained the required license
under sections 36a-510 to 36a-524, inclusive. A person shall be deemed to be engaged
in the business of making secondary mortgage loans if such person advertises, causes
to be advertised, solicits, offers to make or makes secondary mortgage loans, either
directly or indirectly. A secondary mortgage correspondent lender shall not be deemed
to be acting as a secondary mortgage lender if such secondary mortgage correspondent
lender makes a loan utilizing its own funds in a situation where another person does not
honor such person's commitment to fund the loan.

(b) No licensee shall employ or retain an originator without first registering such
originator under sections 36a-510 to 36a-524, inclusive, provided such registration shall
not be required for any originator who is registered by such licensee under sections
36a-485 to 36a-498a, inclusive. No individual may act as an originator without being
registered, or act as an originator, as defined in sections 36a-485 and 36a-510, for more
than one person. The registration of an originator is not effective during any period when
such originator is not associated with a licensee. Both the originator and the licensee shall
promptly notify the commissioner, in writing, of the termination of employment or
services of an originator.

(c) Each secondary mortgage loan negotiated, solicited, placed, found or made without a license shall constitute a separate violation for purposes of section 36a-50.

*Note: On and after September 30, 2008, this section, as amended by section 17 of
public act 07-156, is to read as follows:

"Sec. 36a-511. (Formerly Sec. 36-224b). License required. Violations. (a) No
person shall engage in the business of making secondary mortgage loans or act as a
secondary mortgage broker unless such person has first obtained the required license
under sections 36a-510 to 36a-524, inclusive. A person shall be deemed to be engaged
in the business of making secondary mortgage loans if such person advertises, causes
to be advertised, solicits, offers to make or makes secondary mortgage loans, either
directly or indirectly. A secondary mortgage correspondent lender shall not be deemed
to be acting as a secondary mortgage lender if such secondary mortgage correspondent
lender makes a loan utilizing its own funds in a situation where another person does not
honor such person's commitment to fund the loan.

(b) No person licensed as a mortgage lender or secondary mortgage broker shall
employ or retain an originator unless such originator is licensed under sections 36a-510
to 36a-524, inclusive, provided such license shall not be required for any originator who
is licensed under sections 36a-485 to 36a-498a, inclusive. No individual may act as an
originator without being licensed, or act as an originator, as defined in sections 36a-485
and 36a-510, for more than one person. The license of an originator is not effective
during any period when such originator is not associated with a licensed mortgage lender
or secondary mortgage broker. Both the originator and the mortgage lender and secondary mortgage broker shall promptly notify the commissioner, in writing, of the termination of employment or services of an originator.

(c) Each secondary mortgage loan negotiated, solicited, placed, found or made without a license shall constitute a separate violation for purposes of section 36a-50."

Sec. 36a-513. (Formerly Sec. 36-224d). *(See end of section for amended version and effective date.) License as secondary mortgage lender, secondary mortgage correspondent lender or secondary mortgage broker. Prerequisites. Application for license or registration. Denial of application for license or registration.
(a)(1) The commissioner shall not issue a license as a secondary mortgage lender, a
secondary mortgage correspondent lender or a secondary mortgage broker to any person
unless such person meets the following tangible net worth and experience requirements,
as applicable: (A) The minimum tangible net worth requirement for a secondary mortgage lender shall be one hundred thousand dollars and the minimum tangible net worth
requirement for a secondary mortgage correspondent lender and a secondary mortgage
broker shall be twenty-five thousand dollars, and (B) a mortgage lender shall have at
the location for which the license is sought, a person with supervisory authority over
the lending activities who has had at least three years' experience in the mortgage lending
business within the five years immediately preceding the application for the license,
and a secondary mortgage broker shall have, at the location for which the license is
sought, a person with supervisory authority over the brokerage activities who has at
least three years' experience in the mortgage lending or mortgage brokerage business
within the five years immediately preceding the application for the license, provided
such experience requirements shall not apply to any person whose license is renewed
effective July 1, 2003.

(2) Each licensee shall maintain the net worth required by this subsection and shall
promptly notify the commissioner if such licensee's net worth falls below the net worth
required by this subsection.

(b) The commissioner may issue a secondary mortgage lender license, a secondary
mortgage correspondent lender license or a secondary mortgage broker license. Each
secondary mortgage lender licensee may also act as a secondary mortgage correspondent
lender and a secondary mortgage broker, and each secondary mortgage correspondent
lender licensee may also act as a secondary mortgage broker. Any application for a
license or renewal of such license shall be under oath and on a form provided by the
commissioner. The application shall include: (1) The type of license sought; (2) the
name and address of the applicant; (3) the location for which the license is sought; (4)
the name and address of each member, partner, officer, director, authorized agent and
shareholder owning ten per cent or more of the outstanding stock, as applicable; (5) if
the applicant is a trust or the lead lender in one or more participation loans, the name
and address of each trustee or lead lender and each beneficiary of the trust or other
participant lenders in all outstanding participation loans; (6) a financial statement as of
a date not more than six months prior to the filing of the application which reflects
tangible net worth, and if such financial statement is unaudited, the proprietor, general
partner, or duly authorized officer, trustee or member shall swear to its accuracy under
oath before a notary public; (7) evidence that the person with supervisory authority over
the lending or brokerage activities at the location for which the license is sought meets the
experience required by subsection (a) of this section; (8) an application for registration of
each originator or prospective originator of the applicant at such location; and (9) such
other information pertaining to the applicant, the applicant's background, the background of its principals and employees and the applicant's activities as the commissioner
may require.

(c) If the commissioner finds, upon the filing of an application for a license, that the
applicant meets the requirements of subsection (a) of this section, and that the financial
responsibility, character, reputation, integrity and general fitness of the applicant and
of the partners thereof if the applicant is a partnership, of the members if the applicant
is a limited liability company or association, and of the officers, directors and principal
employees if the applicant is a corporation, are such as to warrant belief that the business
will be operated soundly and efficiently, in the public interest and consistent with the
purposes of sections 36a-510 to 36a-524, inclusive, the commissioner may thereupon
issue the applicant the license. If the commissioner fails to make such findings, or if the
commissioner finds that the applicant made any material misstatement in such application or in the application for registration of an originator, or files an application for
registration of an originator with knowledge that such application contains a material
misstatement by an originator, the commissioner shall not issue a license, and shall
notify the applicant of the denial and the reasons for such denial. Any denial of an
application by the commissioner shall, when applicable, be subject to the provisions of
section 46a-80.

(d) An application for registration or renewal of such registration shall be made on
a form provided by the commissioner.

(e) Upon the filing of an application for registration, the commissioner shall register
the originator named in the application unless the commissioner finds that such originator or the applicant has made any material misstatement in the application or that the
financial responsibility, character, reputation, integrity and general fitness of such originator, are not such as to warrant belief that granting such registration would be in the
public interest and consistent with the purposes of sections 36a-510 to 36a-524, inclusive. If the commissioner denies registration, the commissioner shall notify such originator and the applicant filing the application of the denial and the reasons for such denial.
Any denial of an application by the commissioner shall, when applicable, be subject to
the provisions of section 46a-80.

(f) It shall be considered a violation of section 36a-53a if a licensee files an application for registration of an originator or for renewal of such registration with knowledge
that such application contains a material misstatement by an originator.

*Note: On and after September 30, 2008, this section, as amended by section 5 of
public act 07-91 and section 18 of public act 07-156, is to read as follows:

"Sec. 36a-513. (Formerly Sec. 36-224d). License as secondary mortgage
lender, secondary mortgage correspondent lender or secondary mortgage broker.
Prerequisites. Application for license. Denial of application for license. (a)(1) The
commissioner shall not issue a license as a secondary mortgage lender, a secondary
mortgage correspondent lender or a secondary mortgage broker to any person unless
such person meets the following tangible net worth and experience requirements, as
applicable: (A) The minimum tangible net worth requirement for a secondary mortgage
lender shall be one hundred thousand dollars and the minimum tangible net worth requirement for a secondary mortgage correspondent lender and a secondary mortgage
broker shall be twenty-five thousand dollars, and (B) a mortgage lender shall have at
the location for which the license is sought, a person with supervisory authority over
the lending activities who has had at least three years' experience in the mortgage lending
business within the five years immediately preceding the application for the license,
and a secondary mortgage broker shall have, at the location for which the license is
sought, a person with supervisory authority over the brokerage activities who has at
least three years' experience in the mortgage lending or mortgage brokerage business
within the five years immediately preceding the application for the license.

(2) Each licensee shall maintain the net worth required by this subsection and shall
promptly notify the commissioner if such licensee's net worth falls below the net worth
required by this subsection.

(b) The commissioner may issue a secondary mortgage lender license, a secondary
mortgage correspondent lender license or a secondary mortgage broker license. Each
secondary mortgage lender licensee may also act as a secondary mortgage correspondent
lender and a secondary mortgage broker, and each secondary mortgage correspondent
lender licensee may also act as a secondary mortgage broker. Any application for a
license or renewal of such license shall be under oath and on a form provided by the
commissioner. The application shall include: (1) The type of license sought; (2) the
name and address of the applicant; (3) the location for which the license is sought; (4)
the name and address of each member, partner, officer, director, authorized agent and
shareholder owning ten per cent or more of the outstanding stock, as applicable; (5) if
the applicant is a trust or the lead lender in one or more participation loans, the name
and address of each trustee or lead lender and each beneficiary of the trust or other
participant lenders in all outstanding participation loans; (6) a financial statement as of
a date not more than six months prior to the filing of the application which reflects
tangible net worth, and if such financial statement is unaudited, the proprietor, general
partner, or duly authorized officer, trustee or member shall swear to its accuracy under
oath before a notary public; (7) evidence that the person with supervisory authority over
the lending or brokerage activities at the location for which the license is sought meets
the experience required by subsection (a) of this section; and (8) such other information
pertaining to the applicant, the applicant's background, the background of its principals
and employees and the applicant's activities as the commissioner may require. The
commissioner may conduct a criminal history records check of the applicant, of each
member, partner, officer or director of the applicant and of the person with supervisory
authority at the location for which the license is sought, and require the applicant to
submit the fingerprints of such persons as part of the application. The application shall
be filed with the national mortgage licensing system, which shall process the fingerprints
through the Federal Bureau of Investigation.

(c) If the commissioner finds, upon the filing of an application for a mortgage lender
or secondary mortgage broker license, that the applicant meets the requirements of subsection (a) of this section, and that the financial responsibility, character, reputation,
integrity and general fitness of the applicant and of the partners thereof if the applicant
is a partnership, of the members if the applicant is a limited liability company or association, and of the officers, directors and principal employees if the applicant is a corporation, are such as to warrant belief that the business will be operated soundly and efficiently, in the public interest and consistent with the purposes of sections 36a-510 to
36a-524, inclusive, the commissioner may thereupon issue the applicant the license. If
the commissioner fails to make such findings, or if the commissioner finds that the
applicant made any material misstatement in such application, the commissioner shall
not issue a license, and shall notify the applicant of the denial and the reasons for such
denial. Any denial of an application by the commissioner shall, when applicable, be
subject to the provisions of section 46a-80.

(d) An application for an originator license or renewal of such license shall be made
on a form provided by the commissioner. The commissioner may conduct a criminal
history records check of the applicant and require the applicant to submit fingerprints
as part of the application. The application shall be filed with the national mortgage
licensing system, which shall process the fingerprints through the Federal Bureau of
Investigation.

(e) Upon the filing of an application for an originator license, the commissioner
shall license the originator named in the application unless the commissioner finds that
such applicant has made any material misstatement in the application or that the financial
responsibility, character, reputation, integrity and general fitness of such originator, are
not such as to warrant belief that granting such license would be in the public interest
and consistent with the purposes of sections 36a-510 to 36a-524, inclusive. If the commissioner denies an application for an originator license, the commissioner shall notify
such applicant of the denial and the reasons for such denial. Any denial of an application
by the commissioner shall, when applicable, be subject to the provisions of section 46a-80. Each license shall remain in force and effect until it has been surrendered, revoked
or suspended or expires in accordance with the provisions of sections 36a-510 to 36a-524, inclusive."

History: P.A. 78-216 required that application set forth whether applicant is a lender and/or broker in Subsec. (b); P.A.
80-67 included renewal of licenses in Subsec. (a), reworded Subsec. (b) and specified applicability of Subdiv. (4) to lead
and participant lenders and added Subsec. (c); P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-224d transferred to Sec. 36a-513 in 1995; P.A. 02-111 replaced former Subsec. (a) with new provisions re obtaining license
as secondary mortgage lender, secondary mortgage correspondent lender or secondary mortgage broker and re obligation
to notify commissioner if net worth falls below requisite net worth, amended Subsec. (b) to reflect commissioner's authority
to issue secondary mortgage lender license, secondary mortgage correspondent lender license and secondary mortgage
broker license and to revise application requirements, deleted former Subsec. (c) re investigation and issuance of license,
added new Subsec. (c) re findings and issuance of license, added new Subsec. (d) re application for registration of originator
and added new Subsec. (e) re commissioner's denial of originator registration; P.A. 06-45 amended Subsec. (c) to require
commissioner to deny application for license if commissioner finds that applicant made a material misstatement in application for registration of originator or files application for such registration with knowledge that application contains a material
misstatement by originator, amended Subsec. (e) to require commissioner to register originator named in application unless
commissioner finds that originator has made a material misstatement in the application and to make technical changes,
and added Subsec. (f) to provide that filing application for registration of originator with knowledge that application
contains a material misstatement by originator shall be a violation of Sec. 36a-53a, effective May 8, 2006; P.A. 07-91
amended Subsec. (f) to provide that filing application for renewal of registration of originator with knowledge that application contains a material misstatement by originator shall be a violation of Sec. 36a-53a; P.A. 07-156 amended Subsec.
(a)(1) to delete proviso re inapplicability of experience requirements to any person whose license is renewed effective July
1, 2003, amended Subsec. (b) to authorize commissioner to conduct a criminal history records check of applicants and key
persons of applicants and require applicants to submit fingerprints of such persons, and to require filing applications with
the national mortgage licensing system, amended Subsec. (c) to insert "mortgage lender or secondary mortgage broker"
re license and to delete language re application for registration of an originator, amended Subsec. (d) to authorize commissioner to conduct a criminal history records check of applicant for originator license and require applicant to submit
fingerprints as part of the application and to require filing of application with such system, amended Subsec. (e) to provide
that each license shall remain in force and effect until it has been surrendered, revoked or suspended or expires in accordance
with Secs. 36a-510 to 36a-524, and deleted former Subsec. (f) and other language in Subsecs. (b)(8), (c), (d) and (e) re
application for registration of an originator and registration and substituted language re application for an originator license
and license, effective September 30, 2008.

Sec. 36a-514. (Formerly Sec. 36-224e). *(See end of section for amended version and effective date.) License and registration fees. Automatic suspension of
license or registration. Notice. Opportunity for hearing. (a)(1) Each applicant for a
secondary mortgage lender license or a secondary mortgage correspondent lender license, at the time of making such application, shall pay to the commissioner a license
fee of eight hundred dollars, provided if such application is filed not earlier than one
year before the date such license will expire, the applicant shall pay to the commissioner
a license fee of four hundred dollars, and if such application is for renewal of a license
that expires on June 30, 2003, the applicant shall pay to the commissioner a license fee
of five hundred dollars. Each applicant for a secondary mortgage broker license, at the
time of making such application, shall pay to the commissioner a license fee of four
hundred dollars, provided if such application is filed not earlier than one year before
the date such license will expire, the applicant shall pay to the commissioner a license
fee of two hundred dollars, and if such application is for renewal of a license that expires
on June 30, 2003, the applicant shall pay to the commissioner a license fee of two
hundred fifty dollars. Each license issued pursuant to this section shall expire at the
close of business on September thirtieth of the even-numbered year following its issuance unless such license is renewed. Each licensee shall, on or before September first
of the year in which the license expires, or in the case of a license that expires on June
30, 2003, on or before June 1, 2003, file a renewal application and pay to the commissioner the appropriate license fee as provided in this section to renew the license. Any
renewal application filed with the commissioner after September first, or in the case of
a license that expires on June 30, 2003, after June 1, 2003, shall be accompanied by a one-hundred-dollar late fee and any such filing shall be deemed to be timely and sufficient for
purposes of subsection (b) of section 4-182. (2) Whenever an application for a license,
other than a renewal application, is filed under this section by any person who was a
licensee and whose license expired less than sixty days prior to the date such application
was filed, such application shall be accompanied by a one-hundred-dollar processing
fee in addition to the application fee.

(b) A licensee filing an application for registration of an originator shall, at the time
of making such application pay to the commissioner a registration fee of one hundred
dollars for each such originator. Each registration shall expire at such time as the licensee's license expires unless such registration is renewed. Such licensee shall file an application for renewal of the registration and pay to the commissioner the appropriate registration fee as provided in this subsection for the succeeding two years, commencing
October first.

(c) (1) If the commissioner determines that a check filed with the commissioner to
pay a fee under subsection (a) of this section has been dishonored, the commissioner
shall automatically suspend the license or a renewal license that has been issued but
is not yet effective. The commissioner shall give the licensee notice of the automatic
suspension pending proceedings for revocation or refusal to renew and an opportunity
for a hearing on such actions in accordance with section 36a-51.

(2) If the commissioner determines that a check filed with the commissioner to pay
a registration fee has been dishonored, the commissioner shall automatically suspend
the registration or a registration that has been issued but is not yet effective. The commissioner shall give the originator notice of the automatic suspension and the licensee notice
of the automatic suspension pending proceedings for revocation or refusal to renew and
an opportunity for a hearing on such actions in accordance with section 36a-51.

(d) No abatement of the license or registration fee shall be made if the license or
registration is surrendered, revoked or suspended prior to the expiration of the period
for which it was issued. All fees required by this section shall be nonrefundable.

*Note: On and after September 30, 2008, this section, as amended by section 19 of
public act 07-156, is to read as follows:

"Sec. 36a-514. (Formerly Sec. 36-224e). License and processing fees. Expiration of licenses. Fees nonrefundable. (a) Each applicant for a secondary mortgage
lender license, a secondary mortgage correspondent lender license or a secondary mortgage broker license, at the time of making such application, shall pay to the national
mortgage licensing system the required license fee and processing fee for an initial or
renewal application. Each license issued pursuant to this section shall expire at the close
of business on December thirty-first of the year following its issuance unless such license
is renewed.

(b) Each applicant for an originator license shall, at the time of making such application, pay to the national mortgage licensing system the required license fee and processing fee for an initial or renewal application. Each such license shall expire at the
close of business on December thirty-first of the year following its issuance unless such
license is renewed.

(c) No abatement of the license fee shall be made if the license is surrendered,
revoked or suspended prior to the expiration of the period for which it was issued. All
fees required by this section shall be nonrefundable."

History: P.A. 78-216 made previous license fees applicable to lender's and combination licenses and added provisions
for broker's fee; P.A. 88-150 amended Subsec. (a) by providing that the license fees are nonrefundable, increasing the
license fee to be a broker to $200 and adding the provision re expiration of licenses on June thirtieth of each year; P.A.
92-89 increased the fee applicable to lender's and combination licenses from $250 to $400; P.A. 94-104 changed the license
renewal deadline from June twentieth to June first, added a $100 late fee and added a $100 processing fee for a person
whose license expired within 60 days of his application in Subsec. (a); Sec. 36-224e transferred to Sec. 36a-514 in 1995;
P.A. 96-71 clarified that all fees required by this section are nonrefundable, effective July 1, 1996; P.A. 02-111 amended
Subsec. (a) by providing for license expiration at the close of business on September thirtieth of the even-numbered year
following its issuance unless renewed, adding provisions re fee of $800 for secondary mortgage lender license and secondary
mortgage correspondent lender license and fee of $400 for secondary mortgage broker license, adding provisions re lesser
fees if application filed not earlier than one year before expiration date or if license expires on June 30, 2003, and making
conforming changes, replaced former Subsec. (b) with new provisions re application for registration of originator and
amended Subsec. (c) by adding "or registration"; P.A. 04-69 added new Subsec. (c), requiring commissioner to automatically suspend license or registration if commissioner determines that a check filed to pay the license or registration fee has
been dishonored and requiring commissioner to give notice of the automatic suspension pending proceedings for revocation
or refusal to renew and an opportunity for a hearing in accordance with Sec. 36a-51, and redesignated existing Subsec. (c)
as Subsec. (d); P.A. 05-46 amended Subsec. (a)(1) to provide that a renewal application filed with commissioner after
September first, accompanied by late fee, shall be deemed to be timely and sufficient for purposes of Sec. 4-182(b); P.A.
06-45 amended Subsec. (b) to eliminate proviso re prorated registration fee of $50 for originator for application filed not
earlier than one year before date license expires; P.A. 07-156 amended Subsec. (a) to delete requirement that applicants
pay various license fees to commissioner and substitute requirement that applicants, including applicants for secondary
mortgage broker license, pay the required license fee and processing fee for initial or renewal application to the national
mortgage licensing system and to change date of expiration of licenses from September 30th of even-numbered year
following issuance to December 31st of year following issuance, amended Subsec. (b) to delete references to registration
and to substitute references to license re originators, to require applicants for originator license to pay required license and
processing fees for initial or renewal application to the national mortgage licensing system in lieu of commissioner, and
to provide that license shall expire on December 31st of year following issuance, deleted former Subsec. (c), redesignated
existing Subsec. (d) as Subsec. (c), and amended same to delete references to registration, effective September 30, 2008.

Sec. 36a-515. (Formerly Sec. 36-224f). *(See end of section for amended version and effective date.) License. (a) Each license shall state the location at which the
business is to be conducted and shall state fully the name of the licensee. If the licensee
desires to make secondary mortgage loans in more than one location or to act as a
mortgage broker in more than one location, the licensee shall procure a license for each
location where the business is to be conducted. Each license shall be maintained at the
location for which the license was issued and shall be available for public inspection.
Such license shall not be transferable or assignable. No licensee shall use any name
other than the name stated on the license issued by the commissioner.

(b) A licensee may change the name or location specified on its license if (1) at least
twenty-one calendar days prior to such change, the licensee notifies the commissioner, in
writing, on a form satisfactory to the commissioner, and (2) the commissioner does not
disapprove such change, in writing, or request further information within such twenty-one-day period. The licensee shall promptly notify the commissioner, in writing, of any
other change in the information provided in the application for license or most recent
renewal of such license.

(c) Each license and registration shall remain in force and effect until it has been
surrendered, revoked, suspended or expires in accordance with the provisions of sections
36a-510 to 36a-524, inclusive.

*Note: On and after September 30, 2008, this section, as amended by section 6 of
public act 07-91 and section 20 of public act 07-156, is to read as follows:

"Sec. 36a-515. (Formerly Sec. 36-224f). License. (a) Each mortgage lender and
secondary mortgage broker license shall state the location at which the business is to
be conducted and shall state fully the name of the licensee. If the licensee desires to
make secondary mortgage loans in more than one location or to act as a mortgage broker
in more than one location, the licensee shall procure a license for each location where
the business is to be conducted. Each license shall be maintained at the location for
which the license was issued and shall be available for public inspection. Such license
shall not be transferable or assignable. No licensee shall use any name other than the
name stated on the license issued by the commissioner.

(b) A licensee may change the name or location specified on its license if (1) at least
twenty-one calendar days prior to such change, the licensee notifies the commissioner, in
writing, on a form satisfactory to the commissioner, and (2) the commissioner does not
disapprove such change, in writing, or request further information within such twenty-one-day period. The licensee shall promptly notify the commissioner, in writing, of any
other change in the information provided in the application for license or most recent
renewal of such license.

(c) Each license shall remain in force and effect until it has been surrendered, revoked, suspended or expires in accordance with the provisions of sections 36a-510 to
36a-524, inclusive."

History: P.A. 80-67 clarified provision re posting of license and added reference to lead and participant lenders; P.A.
81-472 made technical changes; Sec. 36-224f transferred to Sec. 36a-515 in 1995; P.A. 02-111 replaced former provisions
with new Subsecs. (a), (b) and (c) re license requirements, licensee location and name, change of information and effectiveness of license and registration; P.A. 07-91 amended Subsec. (a) to delete provision requiring only prior written notice to
commissioner for any change of location of a licensee, and amended Subsec. (b) to allow licensee to change name or
location specified on its license if at least 21 calendar days prior to such change, licensee provides written notice of change
to commissioner on a form satisfactory to commissioner and commissioner does not disapprove change, in writing, or
request further information within such 21-day period; P.A. 07-156 amended Subsec. (a) to insert "mortgage lender and
secondary mortgage broker" re license and amended Subsec. (c) to delete reference to "registration", effective September
30, 2008.

Sec. 36a-516. (Formerly Sec. 36-224g). *(See end of section for amended version of subsection (a) and effective date.) Records to be maintained by licensee.
*(a) Each licensee shall maintain adequate records of each loan transaction at the place
of business named in the license or shall make such records available at such place of
business not later than five business days after requested by the commissioner to do so.
Such records shall provide the following information: (1) A copy of any disclosures
required under part III of chapter 669; (2) whether the licensee acted as mortgage lender,
secondary mortgage broker, or both; (3) in the case of a licensee acting as a mortgage
lender, an adequate loan history, itemizing the amount and date of each payment and
the unpaid balance at all times; (4) the purpose for which the loan was made; (5) the
original or an exact copy of the note, contract or other evidence of indebtedness and the
mortgage deed; and (6) the name and address of the mortgage broker, if any, involved
in the loan transaction.

(b) For each loan that is made and serviced by a licensee, the licensee shall retain
records of such loan transaction as required under subsection (a) of this section, for not
less than two years following the final payment thereon, or the assignment of such loan,
whichever occurs first, or such longer period as may be required by any other provision
of law.

(c) For each loan transaction in which a licensee acts as a mortgage lender or secondary mortgage broker but does not service the loan, the licensee shall retain the records
of such loan transaction for not less than two years from the date of the transaction or
such longer period as may be required by any other provision of law.

*Note: On and after September 30, 2008, subsection (a) of this section, as amended
by section 21 of public act 07-156, is to read as follows:

"(a) Each mortgage lender and secondary mortgage broker licensee shall maintain
adequate records of each loan transaction at the place of business named in the license
or shall make such records available at such place of business not later than five business
days after requested by the commissioner to do so. Such records shall provide the following information: (1) A copy of any disclosures required under part III of chapter 669;
(2) whether the licensee acted as mortgage lender, secondary mortgage broker, or both;
(3) in the case of a licensee acting as a mortgage lender, an adequate loan history,
itemizing the amount and date of each payment and the unpaid balance at all times; (4)
the purpose for which the loan was made; (5) the original or an exact copy of the note,
contract or other evidence of indebtedness and the mortgage deed; and (6) the name and
address of the mortgage broker, if any, involved in the loan transaction."

History: P.A. 78-216 revised requirements re records to be maintained in Subsec. (a); P.A. 80-67 authorized examination
of books and records in Subsec. (b) and added Subsec. (c); (Revisor's note: Pursuant to P.A. 87-9 "banking commissioner"
was changed editorially by the Revisors to "commissioner of banking"); P.A. 88-14 amended Subsec. (c) and added a new
Subsec. (d) re record retention schedule; P.A. 90-184 amended Subsec. (a) by requiring records of secondary mortgage
loan transactions to include the original or an exact copy of the contract or other evidence of indebtedness and the name
and address of the broker, if any, involved in the transaction, and amended Subsec. (b) by authorizing a representative of
the commissioner of banking to examine books and records of licensees; P.A. 94-122 deleted Subsec. (b) re examination
of books and records, relettered Subsecs. (c) and (d) as Subsecs. (b) and (c) and made technical changes, effective January
1, 1995; Sec. 36-224g transferred to Sec. 36a-516 in 1995; P.A. 02-111 amended Subsec. (a) by specifying that records
of each loan transaction shall be maintained and be made available at the place of business named in the license, adding
"mortgage" in Subdivs. (1), (3) and (6) and "secondary mortgage" in Subdiv. (6) and by making technical changes, amended
Subsec. (b) by extending record retention period for licensees who make or service loans from one to two years following
final payment or assignment and by making technical changes, and amended Subsec. (c) by deleting reference to licensee
acting as a broker and substituting "mortgage lender or secondary mortgage broker but does not service the loan" and by
making technical changes; P.A. 07-156 amended Subsec. (a) to insert "mortgage lender and secondary mortgage broker"
re licensee, effective September 30, 2008.

Sec. 36a-517. (Formerly Sec. 36-224h). *(See end of section for amended version of subsection (a) and effective date.) Suspension, revocation or refusal to renew
license or registration or taking of other action. *(a)(1) The commissioner may suspend, revoke or refuse to renew any license or take any other action, in accordance with
section 36a-51, for any reason which would be sufficient grounds for the commissioner
to deny an application for a license under sections 36a-510 to 36a-524, inclusive, or if
the commissioner finds that the licensee or any proprietor, director, officer, member,
partner, shareholder, trustee, employee or agent of such licensee has done any of the
following: (A) Made any material misstatement in the application; (B) committed any
fraud, misappropriated funds or misrepresented, concealed, suppressed, intentionally
omitted or otherwise intentionally failed to disclose any of the material particulars of
any secondary mortgage loan transaction, including disclosures required by part III of
chapter 669 or regulations adopted pursuant thereto, to anyone entitled to such information; (C) violated any of the provisions of this title, or of any regulations adopted pursuant
thereto or any other law or regulation applicable to the conduct of its business; or (D)
failed to perform any agreement with a licensee or a borrower.

(2) The commissioner may suspend, revoke or refuse to renew any registration of
an originator or take any other action, in accordance with the provisions of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an
application for a registration under sections 36a-510 to 36a-524, inclusive, or if the
commissioner finds that the registrant has committed any fraud, misappropriated funds,
misrepresented any of the material particulars of any secondary mortgage loan transaction or has violated any of the provisions of this title or of any regulations adopted
pursuant to such title or any other law or regulation applicable to the conduct of such
registrant's business.

(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-510 to 36a-524, inclusive, or any licensee or registrant has failed to perform any agreement with a borrower,
committed any fraud, misappropriated funds or misrepresented, concealed, suppressed,
intentionally omitted or otherwise intentionally failed to disclose any of the material
particulars of any mortgage loan transaction, including disclosures required by part
III of chapter 669 or regulations adopted pursuant thereto, to anyone entitled to such
information, the commissioner may take action against such person, licensee or registrant in accordance with sections 36a-50 and 36a-52.

*Note: On and after September 30, 2008, this section, as amended by section 18 of
public act 07-91 and section 22 of public act 07-156, is to read as follows:

"Sec. 36a-517. (Formerly Sec. 36-224h). Suspension, revocation or refusal to
renew license or taking of other action. (a)(1) The commissioner may suspend, revoke
or refuse to renew any mortgage lender or secondary mortgage broker license or take
any other action, in accordance with section 36a-51, for any reason which would be
sufficient grounds for the commissioner to deny an application for such license under
sections 36a-510 to 36a-524, inclusive, or if the commissioner finds that the licensee
or any proprietor, director, officer, member, partner, shareholder, trustee, employee or
agent of such licensee has done any of the following: (A) Made any material misstatement in the application; (B) committed any fraud, misappropriated funds or misrepresented, concealed, suppressed, intentionally omitted or otherwise intentionally failed
to disclose any of the material particulars of any secondary mortgage loan transaction,
including disclosures required by part III of chapter 669 or regulations adopted pursuant
thereto, to anyone entitled to such information; (C) violated any of the provisions of
this title, or of any regulations adopted pursuant thereto or any other law or regulation
applicable to the conduct of its business; or (D) failed to perform any agreement with
a licensee or a borrower.

(2) The commissioner may suspend, revoke or refuse to renew any originator license
or take any other action, in accordance with the provisions of section 36a-51, for any
reason which would be sufficient grounds for the commissioner to deny an application
for such license under sections 36a-510 to 36a-524, inclusive, or if the commissioner
finds that the licensee has committed any fraud, misappropriated funds, misrepresented
any of the material particulars of any secondary mortgage loan transaction or has violated
any of the provisions of this title or of any regulations adopted pursuant to such title or
any other law or regulation applicable to the conduct of such licensee's business.

(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-510 to 36a-524, inclusive, or any licensee has failed to perform any agreement with a borrower, committed any
fraud, misappropriated funds or misrepresented, concealed, suppressed, intentionally
omitted or otherwise intentionally failed to disclose any of the material particulars of
any mortgage loan transaction, including disclosures required by part III of chapter 669
or regulations adopted pursuant thereto, to anyone entitled to such information, the
commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52."

History: P.A. 80-67 specified that commissioner may suspend, revoke etc. license "for any reason which would be
sufficient grounds for the commissioner to deny an application under this chapter" in Subsec. (a), specified "intentional"
omission or failure to disclose information in Subdiv. (2) "including disclosures required by chapter 657 or regulations
adopted thereto", added reference to chapters 647a, 657, 657a, 659 and 660 and substituted "adopted" for "promulgated"
in Subdiv. (3) and added Subsec. (b); P.A. 82-174 amended Subsec. (b) by deleting a provision authorizing the commissioner
to issue cease and desist orders and added Subsec. (c) containing new provisions re issuance of cease and desist orders;
P.A. 86-403 amended Subsec. (a) to delete reference to Chapters 657a and 660 and to add reference to Secs. 46a-65 to
46a-67 and 46a-98; P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford",
effective September 1, 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September
1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September 1, 1993, to September 1, 1996, effective
June 14, 1993; P.A. 94-122 deleted Subsec. (c) re cease and desist provisions and made technical changes, effective January
1, 1995; Sec. 36-224h transferred to Sec. 36a-517 in 1995; P.A. 00-61 amended Subsec. (a)(4) by replacing "a written
agreement" with "any agreement" and amended Subsec. (b) by adding language re licensee's failure to perform an
agreement with a borrower, effective July 1, 2000; P.A. 02-111 amended Subsec. (a) by designating existing provisions
as Subdiv. (1) and, within said Subdiv., redesignating existing Subdivs. (1) to (4) as Subparas. (A) to (D), replacing "owner"
with "proprietor", adding reference to misappropriated funds in Subpara. (B), replacing former statutory references with
reference to "this title" and adding provision re other law or regulation applicable to the conduct of business in Subpara.
(C) and adding reference to licensee in Subpara. (D), and by adding new Subdiv. (2) re commissioner's authority to suspend,
revoke or refuse to renew registration of originator; P.A. 04-69 amended Subsec. (b) to allow commissioner to take action
against violator or licensee in accordance with Sec. 36a-52; P.A. 05-46 amended Subsec. (b) to allow commissioner to
impose civil penalty or issue cease and desist order against licensees and registrants who commit fraud, misappropriate funds
or misrepresent, conceal, suppress, intentionally omit or otherwise intentionally fail to disclose any material particulars of
mortgage loan transaction to anyone entitled to such information; P.A. 06-45 amended Subsec. (a)(2) to provide that
violations of title 36a or regulations or any other law applicable to conduct of registrant's business are grounds for suspension, revocation or refusal to renew registration of originator, effective May 8, 2006; P.A. 07-91 amended Subsec. (a)(1)
and (2) to authorize commissioner to take any other action, in accordance with provisions of Sec. 36a-51, effective June
5, 2007; P.A. 07-156 amended Subsec. (a)(1) to insert "mortgage lender or secondary mortgage broker" re license, amended
Subsec. (a)(2) to substitute "license" and "licensee" for "registration" and "registrant", and amended Subsec. (b) to delete
references to "registrant", effective September 30, 2008.

(b) Any mortgage lender who fails to comply with the provisions of this section
shall be liable to the borrower in an amount equal to the sum of: (1) The amount by
which the total of all prepaid finance charges exceeds eight per cent of the principal
amount of the loan; (2) eight per cent of the principal amount of the loan or two thousand
five hundred dollars, whichever is less; and (3) the costs incurred by the borrower in
bringing an action under this section, including reasonable attorney's fees, as determined
by the court, provided no such mortgage lender shall be liable for more than the amount
specified in this subsection in a secondary mortgage loan transaction involving more
than one borrower.

(c) Except as provided in subsection (e) of this section, every advance fee paid or
given, directly or indirectly, to a mortgage lender or secondary mortgage broker required
to be licensed pursuant to sections 36a-510 to 36a-524, inclusive, shall be refundable.

*(d) No originator required to be registered pursuant to sections 36a-510 to 36a-524, inclusive, shall accept payment of any advance fee except an advance fee on behalf
of a licensee. Nothing in this subsection shall be construed as prohibiting the licensee
from paying an originator all or part of an advance fee, provided such advance fee paid
is not refundable under this section.

(e) Subsection (c) of this section shall not apply if: (1) The person providing the
advance fee and the licensee agree, in writing, that the advance fee shall not be refundable, in whole or in part; and (2) the written agreement complies in all respects with the
provisions of subsection (f) of this section.

(f) An agreement under subsection (e) of this section shall meet all of the following
requirements to be valid and enforceable: (1) The agreement shall be dated, signed by
both parties, and be executed prior to the payment of any advance fee; (2) the agreement
shall expressly state the total advance fee required to be paid and any amount of the
advance fee that shall not be refundable; (3) the agreement shall clearly and conspicuously state any conditions under which the advance fee will be retained by the licensee;
(4) the term "nonrefundable" shall be used to describe each advance fee or portion
thereof to which the term is applicable and shall appear in boldface type in the agreement
each time it is used; and (5) the form of the agreement shall (A) be separate from any
other forms, contracts or applications utilized by the licensee, (B) contain a heading
printed in a size equal to at least ten-point boldface type that shall title the form
"AGREEMENT CONCERNING NONREFUNDABILITY OF ADVANCE FEE", (C)
provide for a duplicate copy, which shall be given to the person paying the advance fee
at the time of payment of the advance fee, and (D) include such other specifications as
the commissioner may by regulation prescribe.

(g) An agreement under subsection (e) of this section that does not meet the requirements of subsection (f) of this section shall be voidable at the election of the person
paying the advance fee.

(h) (1) No mortgage lender or secondary mortgage broker required to be licensed
pursuant to sections 36a-510 to 36a-524, inclusive, shall enter into an agreement with
or otherwise require any person to pay the mortgage lender or secondary mortgage
broker for any fee, commission or other valuable consideration lost as a result of such
person failing to consummate a secondary mortgage loan, provided the mortgage lender
or secondary mortgage broker may collect such fee, commission or consideration as an
advance fee subject to the requirements of this section.

(2) No secondary mortgage broker required to be licensed pursuant to sections 36a-510 to 36a-524, inclusive, shall enter into an agreement with or otherwise require any
person to pay the secondary mortgage broker any fee, commission or other valuable
consideration for the prepayment of the principal of a secondary mortgage loan by such
person before the date on which the principal is due.

(i) (1) For the purposes of this subsection:

(A) "Unfair or deceptive act or practice" means (i) the failure to clearly and conspicuously state in the initial phase of the solicitation that the solicitor is not affiliated with
the lender or broker with which the consumer initially applied, (ii) the failure to clearly
and conspicuously state in the initial phase of the solicitation that the solicitation is
based on personal information about the consumer that was purchased, directly or indirectly, from a consumer reporting agency without the knowledge or permission of the
lender or broker with which the consumer initially applied, (iii) the failure in the initial
solicitation to comply with the provisions of the federal Fair Credit Reporting Act relating to prescreening solicitations that use consumer reports, including the requirement
to make a firm offer of credit to the consumer, or (iv) knowingly or negligently using
information from a mortgage trigger lead (I) to solicit consumers who have opted out
of prescreened offers of credit under the federal Fair Credit Reporting Act, or (II) to
place telephone calls to consumers who have placed their contact information on a
federal or state Do Not Call list; and

(B) "Mortgage trigger lead" means a consumer report obtained pursuant to Section
604(c)(1)(B) of the federal Fair Credit Reporting Act, 15 USC 1681b, where the issuance
of the report is triggered by an inquiry made with a consumer reporting agency in response to an application for credit. "Mortgage trigger lead" does not include a consumer
report obtained by a lender that holds or services existing indebtedness of the applicant
who is the subject of the report.

(2) No mortgage lender or secondary mortgage broker shall engage in any unfair
or deceptive act or practice in soliciting an application for a secondary mortgage loan
when such solicitation is based, in whole or in part, on information contained in a mortgage trigger lead. Any violation of this subsection shall be deemed an unfair or deceptive
trade practice under subsection (a) of section 42-110b.

*Note: On and after September 30, 2008, subsection (d) of this section, as amended
by section 23 of public act 07-156, is to read as follows:

"(d) No originator required to be licensed pursuant to sections 36a-510 to 36a-524,
inclusive, shall accept payment of any advance fee except an advance fee on behalf of
a mortgage lender or secondary mortgage broker licensee. Nothing in this subsection
shall be construed as prohibiting the mortgage lender or secondary mortgage broker
licensee from paying an originator all or part of an advance fee, provided such advance
fee paid is not refundable under this section."

History: P.A. 84-69 repealed section 2 of public act 83-460, which was originally slated for codification as Subsec. (b)
of this section, and incorporated its language in section 1 of public act 83-460, i.e., this section, by amendment; P.A. 90-184 designated former section as Subsec. (a), provided that limitation on charges and restriction on demand for payment
prior to maturity applies to any person engaged in the secondary mortgage loan business in this state as a lender or a broker,
and added Subsec. (b) re liability of lender to borrower for noncompliance with provisions of section; P.A. 91-306 amended
Subsec. (a)(1) by adding broker's fees or commissions for which the borrower may be obligated to the limitation on fees
and charges; P.A. 92-132 added Subsecs. (c) to (f), inclusive, concerning the refundability of advance fees; P.A. 93-130
decreased from "ten" to "eight" the amount by which the total of all loan fees, points, commissions, transaction fees, other
prepaid finance charges and broker's fees and commission exceed the principal amount of the loan, effective July 1, 1993;
Sec. 36-224l transferred to Sec. 36a-521 in 1995; (Revisor's note: In 1997 a reference in Subsec. (a) to "sections 36a-510
to 361-524," was changed editorially by the Revisors to "sections 36a-510 to 36a-524," thereby correcting a clerical error
which occurred during the preparation of the 1995 revision); P.A. 01-34 amended Subsec. (a) by excepting time-price
differential from list of fees; P.A. 02-12 amended Subsec. (a) by deleting "as an incident to or a condition of the extension
of credit" and added "connection with", deleting "any loan fees, points, commissions, transaction fees or similar prepaid
finance charges determined in accordance with sections 36a-675 to 36a-685, inclusive, and regulations adopted thereunder,
except the time-price differential, which, when added to any broker's fee or commission for which the borrower may be
obligated," and added "prepaid finance charges that", adding "For purposes of this section, "prepaid finance charge" has
the meaning given to that term in section 36a-746a." and making technical and conforming changes, effective April 22,
2002; P.A. 02-111 replaced references to "lender" and "broker" with references to "mortgage lender" and "secondary
mortgage broker" throughout, amended Subsec. (c) by adding provisions re advance fee paid or given, directly or indirectly,
to lender or broker required to be licensed, added new Subsec. (d) re acceptance of advance fee by originator, redesignated
existing Subsecs. (d) to (f) as Subsecs. (e) to (g) and made technical changes throughout; P.A. 03-61 amended Subsec.
(b)(1) by deleting "loan fees, points, commissions, transaction fees, other" and by deleting ", and secondary mortgage
broker's fees and commissions"; P.A. 06-45 added Subsec. (h) to prohibit mortgage lenders and secondary mortgage
brokers from entering into agreements with borrowers to compensate licensees for fees, commissions or other valuable
consideration lost if borrowers fail to close loan unless compensation is collected as advance fee and to prohibit secondary
mortgage brokers from imposing fees, commissions or other valuable consideration on borrowers for prepayment of
principal of loan, effective May 8, 2006; P.A. 07-118 amended Subsec. (a) to make a technical change and added Subsec.
(i) to define "unfair or deceptive act or practice" and "mortgage trigger lead", to prohibit mortgage lenders and secondary
mortgage brokers from engaging in an unfair or deceptive act or practice in soliciting application for a secondary mortgage
loan if solicitation is based in any way on a mortgage trigger lead, and to provide that violation is deemed an unfair or
deceptive trade practice under Sec. 42-110b(a); P.A. 07-156 amended Subsec. (d) to substitute "licensed" for "registered"
re originator and to insert "mortgage lender or secondary mortgage broker" re licensee, effective September 30, 2008.

*Note: On and after September 30, 2008, this section, as amended by section 24 of
public act 07-156, is to read as follows:

"Sec. 36a-523. (Formerly Sec. 36-224n). Applications and referrals from unlicensed secondary mortgage brokers or originators. No person engaged in the business of making secondary mortgage loans in this state, whether licensed in accordance
with the provisions of sections 36a-510 to 36a-524, inclusive, or exempt from licensing,
shall accept applications or referral of applicants from, or pay a fee to, any secondary
mortgage broker or originator who is required to be licensed under said sections but is
not licensed to act as such by the commissioner, if the mortgage lender has actual knowledge that the secondary mortgage broker or originator is not licensed by the commissioner."

Sec. 36a-534g*. Participation in the national mortgage licensing system authorized. The Banking Commissioner may participate in the national mortgage licensing system and permit such system to process applications for first mortgage lender,
first mortgage correspondent lender, first mortgage broker, secondary mortgage lender,
secondary mortgage correspondent lender, secondary mortgage broker and originator
licenses in this state and receive and maintain records related to such licenses that are
allowed or required to be maintained by the commissioner.

PART II
FINANCE COMPANIES

Sec. 36a-543. (Formerly Sec. 36-260a). Suspension, revocation or refusal to
renew license or taking of other action. Enforcement powers of commissioner. (a)
The commissioner may suspend, revoke or refuse to renew any sales finance company
license or take any other action, in accordance with section 36a-51, if the commissioner
finds that: (1) The licensee, knowingly or without the exercise of due care to prevent
such violation, has violated any provision of sections 36a-535 to 36a-546, inclusive, or
of any other law regulating installment sales financing, or has failed to comply with any
demand or requirement, made by the commissioner under and within the authority of
sections 36a-535 to 36a-546, inclusive; or (2) there has been any material misstatement
or failure to give a true reply to a question in the application for the license; or (3) the
licensee has defrauded any retail buyer to the buyer's damage; or wilfully failed to
perform any written agreement with any retail buyer; or (4) any fact or condition exists
which, if it had existed at the time of the original application for such license, would
have warranted the commissioner's denial of such license originally; or (5) in the case
of a licensee other than a natural person, (A) any officer, director, trustee, member or
partner of such licensee has been guilty of any act or omission which would be cause
for revoking or suspending a license of such party as an individual; or (B) any other
agent or employee of such licensee has been guilty of such act or omission and the
licensee has approved or had knowledge thereof and, after such approval or knowledge,
has retained the benefit, proceeds, profit or advantage of such act or omission or otherwise ratified it.

(b) The commissioner in the commissioner's discretion may revoke or suspend only
the particular license with respect to which grounds for revocation or suspension are of
general application to all locations, or if to more than one location, operated by such
licensee, the commissioner shall revoke or suspend all of the licenses issued to such
licensee or those licenses to which the grounds for revocation or suspension apply, as
the case may be.

(c) No suspension, revocation or surrender of any license shall impair or affect the
obligation of any installment contract, obligation or credit agreement lawfully acquired
previously thereto by the licensee.

(d) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of sections 36a-535 to 36a-546, inclusive, or
any regulation adopted under said sections, or that any licensee has defrauded any retail
buyer to the buyer's damage or wilfully failed to perform any written agreement with
any retail buyer, the commissioner may take action against such person or such licensee
in accordance with sections 36a-50 and 36a-52.

History: 1971 acts required appeal to return day between 12 and 30 days after service rather than to "next" or "next but
one" return day after service and, effective September 1, 1971, replaced superior court with court of common pleas except
that courts with cases pending retain jurisdiction unless pending matters deemed transferable; P.A. 74-254 repealed Subsec.
(g) which had contained appeal provisions; P.A. 82-174 amended Subsec. (a) by authorizing the commissioner to "refuse
to renew" a license and providing that after 10 days' written notice and allowing the licensee a reasonable opportunity to
be heard the commissioner may suspend, revoke or refuse to renew a license repealing former Subsec. (b) re mandatory
hearing prior to revocation or suspension; P.A. 92-12 redesignated Subsecs. and made technical changes; P.A. 93-194
amended Subsec. (c) re effectiveness of a surrender of any license by a licensee when the commissioner has instituted a
proceeding to suspend, revoke or refuse to renew such license, effective June 23, 1993; P.A. 94-122 deleted Subsec. (c)
re surrender of licenses, relettered former Subsecs. (d) and (e) as Subsecs. (c) and (d), deleted Subsec. (f) re investigating
complaints of violations by licensees, added new Subsec. (e) re enforcement actions against violators and made technical
changes, effective January 1, 1995; Sec. 36-260a transferred to Sec. 36a-543 in 1995; P.A. 02-111 amended Subsec. (a)
by adding provision re "sales finance company" license, changing "refusal to issue" to "denial of" such license, and adding
"member" in Subdiv. (5)(A), amended Subsec. (b) to change "place of business" to "location", deleted former Subsec. (d)
re rules and redesignated existing Subsec. (e) as Subsec. (d); P.A. 04-69 amended Subsec. (d) to allow commissioner to
take action against violator or licensee in accordance with Sec. 36a-52 and added provision authorizing action whenever
it appears that any licensee has defrauded any retail buyer to the buyer's damage or wilfully failed to perform any written
agreement with any retail buyer; P.A. 07-91 amended Subsec. (a) to authorize commissioner to take any other action, in
accordance with Sec. 36a-51, effective June 5, 2007.

PART III
SMALL LOAN LENDERS

Sec. 36a-563. (Formerly Sec. 36-233). Charges. Loan restrictions. (a) Every
licensee under sections 36a-555 to 36a-573, inclusive, may loan any sum of money not
exceeding fifteen thousand dollars, excluding charges, and may charge, contract for and
receive thereon charges at a rate not to exceed the following: (1) On any loan which
does not exceed one thousand eight hundred dollars, excluding charges, or on any unsecured loan or on any loan secured only by credit life insurance, seventeen dollars per
one hundred dollars on that part of the cash advance, not exceeding six hundred dollars,
and eleven dollars per one hundred dollars on any remainder when the loan is made
payable over a period of one year, and proportionately at those rates over a longer or
shorter term of loan; (2) on a loan which exceeds one thousand eight hundred dollars,
excluding charges, and which is secured by property other than credit life insurance,
eleven dollars per one hundred dollars on the entire cash advance when the loan is made
payable over a period of one year, and proportionately at that rate over a longer or shorter
term of loan. Such charges shall be computed at the time the loan is made on the full
amount of the cash advance for the full term of the loan contract, notwithstanding any
agreement to repay the loan in installments. Such charges shall be added to the cash
advance and the resulting sum may become the face amount of the note. All payments
made on account of any loan, except those applied to default and deferment charges,
shall be deemed to be applied to the unpaid installments in the order in which they are due.

(b) For the purpose of computations, whether at the maximum rate or less, a month
shall be that period of time from any date in one month to the corresponding date in the
next month, but if there is no such corresponding date, then to the last day of the next
month, and a day shall be considered one-thirtieth of a month when such computation
is made for a fraction of a month. For loans originally scheduled to be repaid over a
period of forty-eight months and fifteen days or less, the portion of the charges applicable
to any particular monthly installment period, as originally scheduled or following a
deferment, shall bear the same ratio to the total charges, excluding any adjustment made
under subsection (c) of this section, as the balance scheduled to be outstanding during
that monthly period bears to the sum of all the monthly balances scheduled originally
by the contract of loan. For loans originally scheduled to be repaid over a period in
excess of forty-eight months and fifteen days, the portion of the charges applicable
to any particular monthly installment period, as originally scheduled or following a
deferment, shall be the charges which would be incurred for that monthly installment
period if the annual percentage rate disclosed to the borrower pursuant to sections 36a-675 to 36a-685, inclusive, were charged, by the actuarial method, on the disclosed
amount financed and all payments were made according to schedule.

(c) Notwithstanding the requirement in subsection (a) of this section, a borrower
and licensee may agree that the first installment due date may be not more than fifteen
days more than one month, and the charge for each day in excess of one month shall be
one-thirtieth of the portion of the charges applicable to a first installment period of one
month. The charges for the extra days shall be added to the first installment, but shall
be excluded in computing deferment charges and refunds. When a loan contract provides
for extra days in a first installment period, for the purposes of sections 36a-555 to 36a-573, inclusive, such extra days shall be treated as the first days in the first installment
period and the due dates of the remaining installments shall be calculated from the due
date of such first installment.

(d) If any installment remains unpaid for ten or more consecutive days, including
Sundays and holidays, after it is due, the licensee may charge and collect a default charge
not exceeding the lesser of seven dollars and fifty cents or five cents per dollar, or
fraction thereof, of such scheduled installment, except a minimum default charge of
three dollars may be charged and collected. Default charges may be collected when due
or at any time thereafter, but may not be accumulated until the last payment date.

(e) If, as of an installment due date, the payment date of all wholly unpaid installments is deferred one or more full months and the maturity of the contract is extended
for a corresponding period, the licensee may charge and collect a deferment charge not
exceeding the charge applicable to the first of the installments deferred, multiplied by
the number of months in the deferment period. The deferment period is that period
during which no payment is made or required by reason of such deferment, except that
no deferment made pursuant to this subsection shall extend the maturity of any contract
made under sections 36a-555 to 36a-573, inclusive, for more than (1) three months, for
loans originally repayable in twenty-four months or less, (2) five months, for loans
originally repayable in more than twenty-four months but not more than forty-eight
months, and (3) eight months, for loans originally repayable in more than forty-eight
months. The deferment charge may be collected at the time of deferment or at any time
thereafter. The portion of the charges contracted for under subsection (a) of this section
applicable to each deferred balance and installment period following the deferment
period shall remain the same as that applicable to such balance and period under the
original contract of loan. No installment on which a default charge has been collected,
or on account of which any partial payment has been made, shall be deferred or included
in the computation of the deferment charge unless such default charge or partial payment
is refunded to the borrower or credited to the deferment charge. Any payment received
at the time of deferment may be applied first to the deferment charge and the remainder,
if any, applied to the unpaid balance of the contract, but if such payment is sufficient
to pay, in addition to the appropriate deferment charge, any installment which is in
default and the applicable default charge, it shall be first so applied and any such installment shall not be deferred or subject to the deferment charge. If a loan is prepaid in full
during the deferment period, the borrower shall receive, in addition to the refund required
under subsection (f) of this section, a refund of that portion of the deferment charge
applicable to any unexpired full month or months of such deferment period.

(f) If the contract of loan is prepaid in full by cash, a new loan or otherwise, before
the final installment date, the portion of the charges applicable to the full installment
periods, as scheduled originally in the loan contract or as rescheduled by reason of any
deferment made pursuant to sections 36a-555 to 36a-573, inclusive, following the date
of prepayment shall be refunded or credited to the borrower. Where prepayment occurs
on other than a monthly installment due date, it shall be deemed to have occurred on
the preceding or succeeding installment due date nearest to the date of prepayment.
Where prepayment occurs on a date midpoint between the preceding and succeeding
monthly installment due dates, it shall be deemed to have occurred on the preceding
monthly due date. In all cases where prepayment occurs before the first monthly installment due date, it shall be deemed to have occurred on the first monthly installment due
date. If judgment is obtained before the final installment date, the judgment shall reflect
the refund which would be required for prepayment in full as of the date judgment is
obtained. No refund of less than one dollar or for partial prepayments need be made.

(g) If part or all of the consideration for a loan contract is the unpaid balance, excluding default charges, of a prior loan with the same licensee, the cash advance under such
new loan contract may include the balance of the prior contract which remains after
giving the required refund.

(h) In addition to the charges provided for by sections 36a-555 to 36a-573, inclusive,
and service charges that are imposed for a check that is dishonored as provided in subsection (i) of section 52-565a, no further or other charge or amount for any examination,
service, brokerage, commission or other thing, or otherwise, shall be directly or indirectly charged, contracted for or received. If interest or any other charges in excess of
those permitted by said sections are charged, contracted for or received, except as the
result of a bona fide error, the contract of loan shall be void and the licensee shall have
no right to collect or receive any principal, interest or charges. No person shall owe
any licensee, as such, at any time more than fifteen thousand dollars for principal as a
borrower, comaker or guarantor for loans made under said sections. No licensee shall
induce or permit any borrower or borrowers to split or divide any loan or loans made
under said sections, or permit any borrower to become obligated, directly or indirectly,
under more than one contract of loan under said sections at the same time primarily for
the purpose of obtaining a higher rate of charge than would otherwise be permitted by
said sections. No contract made under said sections, except as deferred in accordance
with subsection (e) of this section, shall provide for a greater rate of interest than twelve
per cent per annum on the balance remaining unpaid twenty-four months and fifteen
days after the date of making such contract if the original cash advance was one thousand
dollars or less or thirty-six months and fifteen days if the original cash advance was in
excess of one thousand dollars but not in excess of one thousand eight hundred dollars.
No contract made under said sections with an original cash advance in excess of one
thousand eight hundred dollars, except as deferred in accordance with subsection (e) of
this section, shall provide for a greater rate of interest than twelve per cent per annum
on the balance remaining unpaid on the scheduled maturity date of said contract. No
part of the principal balance remaining unpaid by a borrower twenty-four months and
fifteen days after making such contract where the original cash advance was one thousand dollars or less or thirty-six months and fifteen days where the original cash advance
was in excess of one thousand dollars but not in excess of one thousand eight hundred
dollars, shall directly or indirectly be renewed or refinanced by the lender who made
such loan. If the maturity date of a loan made under said sections has been extended by
deferred payments, the maximum renewal period that such loan may be extended shall
be the number of months such loan is deferred. When a contract is renewed or refinanced
prior to twenty-four months and fifteen days where the original cash advance was one
thousand dollars or less or thirty-six months and fifteen days where the original cash
advance exceeded one thousand dollars but did not exceed one thousand eight hundred
dollars, from the date of making such contract, such renewal or refinancing shall, for
the purposes of this section, be deemed a separate loan transaction.

(i) Notwithstanding the provisions of subsection (a) of this section, on any loan
secured by real property a licensee may include in the amount of the loan the following
closing costs, provided such costs are bona fide, reasonable in amount and not assessed
for the purpose of circumventing or otherwise limiting any applicable provision of sections 36a-555 to 36a-573, inclusive: (1) Fees or premiums for title examination, abstract
of title, title insurance, surveys, or similar purposes; (2) appraisals, if made by a person
who is not an employee or affiliated with the licensee, and (3) fees and taxes paid to
public officials for the recording and release of any document related to the real estate
security. A licensee may collect costs incurred in the event of foreclosure which shall
not include any attorney's fee.

(j) No agreement with respect to a loan under sections 36a-555 to 36a-573, inclusive,
may provide for charges resulting from default by the borrower, other than those authorized by said sections.

History: 1963 act incorporated previous provisions as Subsecs. (a) and (h) substituting "charges" for "interest" where
occurring, raised loan limit in Subsec. (a) from $600 to $1,000 "excluding charges" and changing method of calculating
charges, raised limit in Subsec. (h) from $600 to $1,000, substituted 24 months and 15 days for 20 months, deleted prohibition
against granting additional loan to borrower until unpaid balance of previous loan is paid in full and required consideration
of renewed or refinanced contract as separate loan transaction in same Subsec. and inserted Subsecs. (b) to (g); 1969 act
increased loan limit in Subsecs. (a) and (h) to $1,800, raised amount charged on excess of $300 from $9 to $11 per $100
in Subsec. (a), specified applicability of provisions to loans under chapter in Subsec. (h) and made 24-month and 15-day
period applicable where cash advance was $1,000 or less and allowed 36-month and 15-day period where advance exceeded
that amount; P.A. 73-419 added provisions governing date when prepayment is deemed to have occurred in Subsec. (f);
P.A. 75-99 raised loan limit in Subsecs. (a) and (h) from $1,800 to $5,000 and in Subsec. (a) made previous charge rates
applicable to loans not exceeding former limit and added rates for other allowed loans, amending Subsec. (h) accordingly
and adding reference to loans secured by real estate, replaced default charge of $0.05 per dollar with charge consisting of
the lesser of $5 or $0.05 per dollar and added Subsec. (i) authorizing loans in excess of $1,800 if secured by real estate;
P.A. 77-129 clarified loan limits in Subsec. (a) by referring to unsecured or secured loans and to types of security, made
previous provisions of Subsec. (b) applicable to loans originally scheduled for repayment within 48 months and 15 days
and added provisions re loans with longer repayment period, deleted references to loans secured by real estate in Subsec.
(h) and added provision which allowed extension of renewal period to the number of months loan maturity day has been
extended through deferred payments and repealed Subsec. (i); P.A. 80-45 raised amount which determines charge rate in
Subsec. (a)(1) from $300 to $600; P.A. 81-102 amended Subsec. (d) by increasing the maximum default charge from $5
to $7.50 and establishing a minimum default charge of $3, and amended Subsec. (e) to make the length of the extension
of the maturity of a contract subject to the original repayment period of the loan; P.A. 83-358 added Subsec. (j) concerning
allowable closing costs on loans secured by real estate and added Subsec. (k) prohibiting unauthorized charges for default
on any loan; P.A. 92-12 made technical changes; Sec. 36-233 transferred to Sec. 36a-563 in 1995; P.A. 97-13 increased
limit from $5,000 to $15,000 in Subsecs. (a) and (h) and made technical changes (Revisor's note: A reference in Subsec.
(a) to Secs. "36-555 to 36a-573", inclusive, was changed editorially by the Revisors to Secs. "36a-555 to 36a-573",
inclusive); P.A. 00-164 amended Subsec. (h) by adding provision re service charges imposed for dishonored checks; P.A.
07-217 made technical changes in Subsecs. (c) and (e), effective July 12, 2007.

Sec. 36a-570. (Formerly Sec. 36-239). Regulations. The commissioner may
adopt such regulations, in accordance with chapter 54, and make such findings as may
be necessary for the conduct of the small loan business and its association with other
businesses, the conduct of the associated businesses and the enforcement of the provisions of sections 36a-555 to 36a-573, inclusive.

(1949 Rev., S. 5948 (3); P.A. 94-122, S. 266, 340; P.A. 07-91, S. 7.)

History: P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-239 transferred to Sec. 36a-570 in
1995; P.A. 07-91 authorized commissioner to adopt regulations and make findings as necessary for the association of small
loan business with other businesses and the conduct of associated businesses, effective June 5, 2007.

Sec. 36a-572. (Formerly Sec. 36-242). Suspension, revocation or refusal to renew license or taking of other action. The commissioner may suspend, revoke or
refuse to renew any license issued under the provisions of section 36a-556 or take any
other action, in accordance with section 36a-51, if the commissioner finds that the licensee has violated any provision of sections 36a-555 to 36a-573, inclusive, or any
regulation or order lawfully made pursuant to and within the authority of said sections,
or if the commissioner finds that any fact or condition exists which, if it had existed at
the time of the original application for the license, clearly would have warranted a denial
of such license.

History: P.A. 74-254 required that notice be in form required in Sec. 4-177(b) rather than that it state "the contemplated
action and in general the grounds therefor"; P.A. 78-303 deleted requirement that at least one member of banking commission (in addition to commissioner) find fact or condition which would warrant refusal to issue license as ground for
revocation, that commission having been abolished by P.A. 77-614; P.A. 94-122 made technical changes, effective January
1, 1995; Sec. 36-242 transferred to Sec. 36a-572 in 1995; P.A. 02-111 deleted "has failed to pay annual license fee or" and
changed "refusing to issue such license" to "a denial of such license"; P.A. 04-69 amended section to allow commissioner to
suspend or refuse to renew a license; P.A. 07-91 authorized commissioner to take any other action, in accordance with
Sec. 36a-51, effective June 5, 2007.

PART IV
CHECK CASHING SERVICES

Sec. 36a-587. (Formerly Sec. 36-571). Suspension, revocation or refusal to renew license or taking of other action. Hearings. Enforcement powers of commissioner. (a) The commissioner may suspend, revoke or refuse to renew any license issued
pursuant to section 36a-581 or take any other action, in accordance with the provisions
of section 36a-51, for any reason which would be sufficient grounds for the commissioner to deny an application for a license under sections 36a-580 to 36a-589, inclusive,
or if the commissioner finds that the licensee or any owner, director, officer, member,
partner, shareholder, trustee, employee or agent of such licensee has done any of the
following: (1) Made any material misstatement in the application; (2) committed any
fraud, engaged in dishonest activities or made any misrepresentation; (3) violated any
provision of sections 36a-580 to 36a-589, inclusive, or any regulation promulgated
under said sections; or (4) demonstrated incompetency or untrustworthiness to act as a
licensed check cashing service.

(b) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any of the provisions of sections 36a-580 to 36a-589, inclusive, or any regulation adopted pursuant to said sections, or any licensee or any owner,
director, officer, member, partner, shareholder, trustee, employee or agent of such licensee has committed any fraud, engaged in dishonest activities or made any misrepresentation, the commissioner may take action against such person or licensee in accordance with sections 36a-50 and 36a-52.

History: P.A. 88-230 replaced "judicial district of Hartford-New Britain" with "judicial district of Hartford", effective
September 1, 1991; P.A. 89-178 amended Subsec. (a) by substituting the commissioner of banking for the commissioner
of consumer protection; Sec. 21-117 transferred to Sec. 36-571 in 1991; P.A. 90-98 changed the effective date of P.A. 88-230 from September 1, 1991, to September 1, 1993; P.A. 93-142 changed the effective date of P.A. 88-230 from September
1, 1993, to September 1, 1996, effective June 14, 1993; P.A. 94-122 deleted Subsec. (c) re cease and desist provisions and
made technical changes, effective January 1, 1995; Sec. 36-571 transferred to Sec. 36a-587 in 1995; P.A. 05-46 amended
Subsec. (b) to allow commissioner to impose civil penalty or issue cease and desist order against licensee or owner, director,
officer, member, partner, shareholder, trustee, employee or agent of such licensee who has committed fraud, engaged in
dishonest activities or made any misrepresentation; P.A. 06-35 amended Subsec. (b) to authorize commissioner to take
enforcement action under Secs. 36a-50 and 36a-52 for violation of "any of" the provisions of Secs. 36a-580 to 36a-589,
inclusive, or any regulation adopted pursuant to said Secs., effective May 8, 2006; P.A. 07-91 amended Subsec. (a) to
authorize commissioner to take any other action, in accordance with Sec. 36a-51, effective June 5, 2007.

PART V
PAYMENT INSTRUMENTS. MONEY TRANSMISSION

(1) "Electronic payment instrument" means a card or other tangible object for the
transmission of money or monetary value or payment of money which contains a microprocessor chip, magnetic stripe, or other means for the storage of information, that is
prefunded and for which the value is decremented upon each use, but does not include
a card or other tangible object that is redeemable by the issuer in the issuer's goods or
services.

(2) "Holder" means a person, other than a purchaser, who is either in possession of
a Connecticut payment instrument and is the named payee thereon or in possession of
a Connecticut payment instrument issued or endorsed to such person or bearer or in
blank. "Holder" does not include any person who is in possession of a lost, stolen or
forged Connecticut payment instrument.

(4) "Material litigation" means any litigation that, according to generally accepted
accounting principles, is deemed significant to a person's financial health and would
be required to be referenced in a person's annual audited financial statements, report to
shareholders or similar documents.

(5) "Monetary value" means a medium of exchange, whether or not redeemable in
money.

(6) "Money order" means any check, draft, money order or other payment instrument. "Money order" does not include a travelers check or electronic payment instrument.

(7) "Money transmission" means engaging in the business of receiving money or
monetary value for current or future transmission or the business of transmitting money
or monetary value within the United States or to locations outside the United States by
any and all means including, but not limited to, payment instrument, wire, facsimile or
electronic transfer or issuing stored value.

(9) "Outstanding" means, in the case of a money order, travelers check, electronic
payment instrument or stored value, that: (A) It is sold or issued in the United States;
(B) a report of it has been received by a licensee from its agents or subagents; and (C)
it has not yet been paid by the issuer.

(10) "Payment instrument" means a money order, travelers check or electronic payment instrument that evidences either an obligation for the transmission of money or
monetary value or payment of money, or the purchase or the deposit of funds for the
purchase of such money order, travelers check or electronic payment instrument. A
payment instrument is a "Connecticut payment instrument" if it is sold in this state.

(11) "Permissible investment" means: (A) Cash in United States currency; (B) time
deposits, as defined in section 36a-2, or other debt instruments of a bank; (C) bills of
exchange or bankers acceptances which are eligible for purchase by member banks of
the Federal Reserve System; (D) commercial paper of prime quality; (E) interest-bearing
bills, notes, bonds, debentures or other obligations issued or guaranteed by: (i) The
United States or any of its agencies or instrumentalities, or (ii) any state, or any agency,
instrumentality, political subdivision, school district or legally constituted authority of
any state if such investment is of prime quality; (F) interest-bearing bills or notes, or
bonds, debentures or preferred stocks, traded on any national securities exchange or on
a national over-the-counter market, if such debt or equity investments are of prime
quality; (G) receivables due from selling agents consisting of the proceeds of the sale
of payment instruments which are not past due or doubtful of collection; (H) gold; and (I)
any other investments approved by the commissioner. Notwithstanding the provisions of
this subdivision, if the commissioner at any time finds that an investment of a licensee is
unsatisfactory for investment purposes, the investment shall not qualify as a permissible
investment.

(12) "Prime quality" of an investment means that it is within the top four rating
categories in any rating service recognized by the commissioner unless the commissioner determines for any licensee that only those investments in the top three rating
categories qualify as "prime quality".

(13) "Purchaser" means a person who buys or has bought a Connecticut payment
instrument.

(14) "Stored value" means monetary value that is evidenced by an electronic record.
For the purposes of this subdivision, "electronic record" means information that is stored
in an electronic medium and is retrievable in perceivable form.

(15) "Travelers check" means a payment instrument for the payment of money that
contains a provision for a specimen signature of the purchaser to be completed at the time
of a purchase of the instrument and a provision for a countersignature of the purchaser to
be completed at the time of negotiation.

Sec. 36a-602. (Formerly Sec. 36-538). Surety bond or investments required.
Authority of commissioner to proceed on bond. Cancellation of surety bond. Notice
of cancellation. Automatic suspension of license. Notice. Opportunity for hearing.
(a) As a condition for the issuance and retention of the license, applicants for a license
and licensees shall file with the commissioner a surety bond, the form of which shall be
approved by the Attorney General, issued by a bonding company or insurance company
authorized to do business in this state. The bond shall be in favor of the commissioner,
cover claims that arise during the period the license remains in full force and effect and
the succeeding two years after such license has been surrendered, revoked or suspended
or has expired, in accordance with the provisions of sections 36a-595 to 36a-610, inclusive, and be in the principal sum of (1) three hundred thousand dollars for any applicant
and any licensee that engages in the business of issuing Connecticut payment instruments with an average daily balance of outstanding Connecticut payment instruments
during the two previous reporting quarters of three hundred thousand dollars or less or
any licensee that engages in the business of money transmission with an average weekly
amount of money or monetary value received or transmitted, whichever amount is
greater, during the two previous reporting quarters of one hundred fifty thousand dollars
or less; (2) five hundred thousand dollars for any licensee that engages in the business of
issuing Connecticut payment instruments with an average daily balance of outstanding
Connecticut payment instruments during the two previous reporting quarters of greater
than three hundred thousand dollars but less than five hundred thousand dollars or any
licensee that engages in the business of money transmission with an average weekly
amount of money or monetary value received or transmitted, whichever amount is
greater, during the two previous reporting quarters of greater than one hundred fifty
thousand dollars but less than two hundred fifty thousand dollars; and (3) one million
dollars for any licensee that engages in the business of issuing Connecticut payment
instruments with an average daily balance of outstanding Connecticut payment instruments during the two previous reporting quarters equal to or greater than five hundred
thousand dollars or any licensee that engages in the business of money transmission
with an average weekly amount of money or monetary value received or transmitted,
whichever amount is greater, during the two previous reporting quarters of two hundred
fifty thousand dollars or greater. The proceeds of the bond, even if commingled with
other assets of the licensee, shall be deemed by operation of law to be held in trust for
the benefit of any claimants against the licensee to serve the faithful performance of the
obligations of the licensee with respect to the receipt, handling, transmission or payment
of money or monetary value in connection with the sale and issuance of Connecticut
payment instruments or transmission of money or monetary value in the event of the
bankruptcy of the licensee, and shall be immune from attachment by creditors or judgment creditors. The commissioner may proceed on such bond against the principal or
surety thereon, or both, to collect any civil penalty imposed upon the licensee pursuant
to subsection (a) of section 36a-50. In the event a license has been surrendered, revoked
or suspended or has expired, in accordance with the provisions of sections 36a-595 to
36a-610, inclusive, the commissioner, in the commissioner's discretion, may lower the
required principal sum of the bond based on the licensee's level of business and outstanding Connecticut payment instruments.

(b) The surety company may cancel the bond at any time by a written notice to the
licensee, stating the date cancellation shall take effect. Such notice shall be sent by
certified mail to the licensee at least thirty days prior to the date of cancellation. A surety
bond shall not be cancelled unless the surety company notifies the commissioner in
writing not less than thirty days prior to the effective date of cancellation. The commissioner shall automatically suspend the license on the date the cancellation takes effect,
unless the surety bond has been replaced or renewed, all of the principal sum of such
surety bond has been invested as provided in subsection (c) of this section, or the surety
bond has been replaced in part and the remaining part of the principal sum of such surety
bond has been invested as provided in subsection (c) of this section or unless the licensee
has ceased business and has voluntarily surrendered the license. The commissioner shall
give the licensee notice of the automatic suspension pending proceedings for revocation
or refusal to renew such license and an opportunity for a hearing on such actions in
accordance with section 36a-51.

(c) In lieu of all or part of the principal sum of such surety bonds, applicants for a
license and licensees may invest such sum as provided in this subsection. The book or
market value, whichever is lower, of such investments shall be equal to the amount of
the bond required by subsection (a) of this section less the amount of the bond filed with
the commissioner by the applicant or licensee. Such applicants and licensees shall keep
such investments with such banks, Connecticut credit unions or federal credit unions
as such applicants or licensees may designate and the commissioner may approve, and
subject to such conditions as the commissioner deems necessary for the protection of
consumers and in the public interest. As used in this subsection, "investments" means:
(1) Dollar deposits; and (2) interest-bearing bills, notes, bonds, debentures or other
obligations issued or guaranteed by (A) the United States or any of its agencies or
instrumentalities, or (B) any state, or any agency, instrumentality, political subdivision,
school district or legally constituted authority of any state if such investment is of prime
quality. The investments shall secure the same obligation as would a surety bond filed
under this section. The investments shall be held at such banks or credit unions to cover
claims during the period the license remains in full force and effect and the succeeding
two years after such license has been surrendered, revoked or suspended or has expired
in accordance with the provisions of sections 36a-595 to 36a-610, inclusive. The licensee
shall be permitted to collect interest on such investments and at any time to exchange,
examine and compare such investments. The investments made pursuant to this section,
even if commingled with other assets of the licensee, shall be deemed by operation of
law to be held in trust for the benefit of any claimants against the licensee to serve
the faithful performance of the obligations of the licensee with respect to the receipt,
handling, transmission or payment of money or monetary value in connection with the
sale and issuance of Connecticut payment instruments or transmission of money or
monetary value in the event of the bankruptcy of the licensee, and shall be immune from
attachment by creditors or judgment creditors.

History: P.A. 91-306 amended Subsec. (a) by deleting existing provisions re amount of bond and added Subdivs. (1),
(2) and (3) re principal sum of bond; P.A. 94-122 made technical changes, effective January 1, 1995; Sec. 36-538 transferred
to Sec. 36a-602 in 1995; P.A. 98-192 amended Subsec. (a) by adding provision re two-year time period for bond to remain
in place and adding specific requirements for licensees that engage in the business of receiving money for transmitting the
same; P.A. 01-56 amended Subsec. (a) by changing "Connecticut instruments" to "Connecticut payment instruments", by
rewording language re money transmission and by replacing provisions re trust fund with provisions re proceeds of bond
deemed to be held in trust for benefit of claimants, and amended Subsec. (c) by replacing provisions re investment maintained in trust with provisions re investments deemed to be held in trust for benefit of claimants; P.A. 02-111 amended
Subsec. (a) by adding provision re authority of commissioner to proceed on bond to collect civil penalty imposed pursuant
to Sec. 36a-50(a); P.A. 03-61 changed "corporate surety bond" to "surety bond" throughout, amended Subsec. (a) by
revising provisions re approval of form, coverage of bond and beginning of two-year period and by adding provision re
surrendered, revoked, suspended or expired license and amended Subsec. (c) by inserting "Connecticut"; P.A. 04-14
amended Subsec. (a)(1), (2) and (3) to replace references to "equivalent thereof" with references to "monetary value
received or transmitted, whichever amount is greater", and to insert references to "monetary value" in provisions re proceeds
of the bond to be held in trust for benefit of claimants against licensee, added new Subsec. (b) re cancellation of surety
bond and automatic suspension of license and redesignated existing Subsecs. (b) and (c) as new Subsecs. (c) and (d),
respectively, revising internal reference accordingly, effective April 16, 2004; P.A. 06-35 amended Subsec. (c) to require
applicants and licensees to keep investments with such banks, Connecticut credit unions or federal credit unions as applicants or licensees designate, to require that investments be held subject to such conditions as commissioner deems necessary
for protection of consumers and in the public interest and to define "investments" to include "dollar deposits" and "interest-bearing" bills, notes, bonds, debentures or other obligations, deleting former Subdiv. designators (1) and (2), reference to
"in accordance with such regulations as the commissioner may adopt", and Subsec. designator (d), to add provision requiring
investments to be held at banks or credit unions to cover claims during period license remains in effect and the succeeding
two years after license has been surrendered, revoked or suspended or has expired, and to make conforming changes,
effective May 8, 2006; P.A. 07-91 amended Subsec. (a) to insert references to "Connecticut" payment instruments and
transmission of "monetary value", and amended Subsec. (c) to insert references to transmission or payment of "monetary
value" and to make a technical change.

(b) As used in subsection (a) of this section, "value" means the lower of book or
market value, except that with regard to debt obligations which the licensee as a matter
of policy retains until maturity, "value" means the greater of book or market value unless
the commissioner orders that for some or all investments of a particular licensee, "value"
means the lower of book or market value.

(c) Permissible investments, even if commingled with other assets of the licensee,
shall be deemed by operation of law to be held in trust for the benefit of any claimants
against the licensee to serve the faithful performance of the obligations of the licensee
with respect to the receipt, handling, transmission or payment of money or monetary
value in connection with the sale and issuance of Connecticut payment instruments or
transmission of money or monetary value in the event of the bankruptcy of the licensee,
and shall be immune from attachment by creditors or judgment creditors.

(b) Each licensee which issues Connecticut payment instruments which are travelers checks or electronic payment instruments shall at all times have a net worth of at
least one million dollars.

(c) Each licensee that engages in the business of money transmission, except by
issuing stored value, shall at all times have a net worth of at least five hundred thousand
dollars. Each licensee that engages in the business of money transmission by issuing
stored value shall at all times have a net worth of at least five hundred thousand dollars
or a higher amount as determined by the commissioner, in accordance with generally
accepted accounting principles.

History: Sec. 36-540 transferred to Sec. 36a-604 in 1995; P.A. 98-192 amended Subsec. (b) by adding reference to
electronic payment instruments and added new Subsec. (c) re net worth requirements for licensees that engage in the
business of receiving money for transmitting the same; P.A. 01-56 amended Subsecs. (a) and (b) by changing "Connecticut
instruments" to "Connecticut payment instruments" and amended Subsec. (c) by rewording language re money transmission; P.A. 04-14 amended Subsec. (c) to insert exception re issuing stored value and provision requiring each licensee that
engages in business of money transmission by issuing stored value to have at all times a net worth of at least $500,000 or
a higher amount as determined by the commissioner, effective April 16, 2004; P.A. 05-74 amended Subsec. (c) to make
a technical change, effective June 2, 2005; P.A. 07-72 made a technical change in Subsec. (c).

(1) The business may be conducted by the licensee or through or by means of such
agents and subagents as the licensee may periodically designate or appoint.

(2) No license under sections 36a-595 to 36a-610, inclusive, shall be required of
any agent or subagent of a licensee.

(3) Each agent and subagent shall, from the moment of receipt, hold the proceeds
of a sale or delivery of a licensee's Connecticut payment instruments in trust for the
benefit of such licensee or of an agent of the licensee on behalf of such licensee.

(4) A licensee shall be liable for the loss caused to any purchaser or holder of the
licensee's Connecticut payment instruments by the failure of an agent or subagent of
the licensee to forward to the licensee the amount due from the proceeds of a sale or
delivery of the licensee's Connecticut payment instruments, or money or monetary value
received for transmission.

(b) For purposes of subsection (a) of this section, a licensee shall include any entity
or person exempt under section 36a-609.

Sec. 36a-608. (Formerly Sec. 36-544). Enforcement powers of commissioner.
(a) The commissioner shall make such investigations and conduct such hearings as the
commissioner considers necessary to determine whether any licensee or any other person has violated or is about to violate any of the provisions of sections 36a-595 to 36a-610, inclusive, or whether any licensee has acted in such manner as otherwise would
justify the suspension or revocation of the license. The provisions of section 36a-17
shall apply to such investigation.

(b) The commissioner may suspend or revoke a license or take any other action, in
accordance with section 36a-51, on any ground on which the commissioner might refuse
to issue an original license, for any violation of sections 36a-595 to 36a-610, inclusive,
or of any regulation adopted under said sections, for noncompliance with an order which
the commissioner may issue under said sections to a licensee, or for failure of the licensee
to pay a judgment ordered by any court within or outside this state within thirty days
after the judgment becomes final or within thirty days after expiration or termination
of a stay of execution of the judgment.

(c) Whenever it appears to the commissioner that any person has violated, is violating or is about to violate any provision of sections 36a-595 to 36a-610, inclusive, or
any regulation adopted under said sections, the commissioner may take action against
such person in accordance with section 36a-50.

(d) The commissioner may order a licensee to terminate its agency relationship with
any agent or subagent who refuses to allow an examination of its books and records
regarding the business of such licensee as provided in section 36a-605.